Desert Troon Companies, a Scottsdale, Arizona-based real estate development firm, has sold a portfolio of five Class-A office buildings in Scottsdale's Perimeter Center for $122 million, or $191 per square foot. The portfolio was purchased by a joint venture between Phoenix-based Wentworth Property Co. and NY-based Northwood Investors with representation from Cushman & Wakefield in Phoenix, which will handle leasing for the properties. According to a press release, the acquisition was partially funded by an $80 million loan provided by Western Alliance Bank.
"As one of the premiere office portfolios in the state, it has been Desert Troon Companies' privilege to manage this standout portfolio with our partners," said Daniel Smith, CEO of Desert Troon Companies. "Desert Troon Companies used this strategic disposition of assets to continue its targeted value add acquisition strategy." The properties in the portfolio include:
Perimeter Gateway I, a 228,147-square-foot office compound at 8667 and 8701 E. Hartford Drive;
Perimeter Gateway II, an 80,040-square-foot office building at 8777 E. Hartford Drive;
Perimeter Gateway V, a 65,848-square-foot office at 8665 E. Hartford Drive;
Perimeter Gateway III, a 84,237-square-foot office at 8660 E. Hartford Drive; and
Terra Verde, a 180,445-square-foot office building at 16767 N. Perimeter Drive
The Wentworth/Northwood venture said it plans to make major improvements to the Perimeter Gateway portfolio, including the addition of two parking structures, remodeling lobbies and common areas, and adding cafés and a fitness center. The venture will also convert 162,000 square feet of existing office space in all five Perimeter Center buildings to spec suites, with the currently vacant space to be transformed into creative office space with open ceilings and modern finishes. A portion of the Western Alliance Bank loan will be used for some of the planned improvements. "This portfolio offered optimal location, so with our plans to remodel common areas, add amenities and build-out spec suites we are confident that the available space in the buildings will attract considerable interest from new tenants and successfully lease up," explained Jim Wentworth, Jr., principal with Wentworth Property Co.
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