Gilbert – A venture formed by Arch Street Capital Advisors LLC in Greenwich, Ct. (Craig Friedman, chairman) has expanded into Tempe – In the first of what is expected to be a two-building purchase, a company formed by VEREIT Inc. in New York City, N.Y. (NYSE:VER) paid $16.824 million ($197.36 per foot) to buy a 85,245-square-foot office building within Tempe Commerce Park at 7410 S. Roosevelt Street in Tempe. The seller was Walton-EH Tempe Commerce JV VI LLC, formed by Chicago, Ill.-based Walton Street Capital LLC (Ira Schulman, et al., principals) and Everest Holdings in Scottsdale (Joe Blackbourn, principal). The sale was negotiated by private Valley broker Jim Fijan, along with Will Mast of CBRE in Phoenix.
The single-level structure is one of two back-office buildings totaling 160,313 sq. ft. that are fully leased to Consumer Cellular Inc. of Tigard, Ore. The other structure, which totals 75,068 sq. ft., is located on the other side of the road at 7419 S. Roosevelt Street. Sources say VEREIT has an option to buy that building and will pay roughly $15 million ($200 per foot) to purchase that back-office before year-end 2018. Public records show Cole OFC Tempe AZ LLC (VEREIT entity) acquired the 6.45-acre property at 7410 S. Roosevelt Street in a cash transaction. In May 2013, the venture formed by Walton/Everest paid $12.2 million ($76.10 per foot) to acquire the two Tempe buildings.
Developed in 1998 and 1999 on a combined 12.88 acres, the back-office structures are located near the northwest corner of Kyrene and Elliot roads within the five-building Tempe Commerce Park. VEREIT manages $14.7 billion of assets in a portfolio comprised of 92.2 million sq. ft. of retail, restaurant, office and industrial space in 4,100 properties located in 49 states, the District of Columbia, Puerto Rico and Canada. Additionally, the publicly-traded VEREIT manages $7.8 billion of real estate properties on behalf of the Cole Capital non-listed REITs. Previously known as American Realty Capital Properties Inc. (NASDAQ:ARCP), the predecessor to VEREIT acquired Cole Real Estate Investments Inc. of Phoenix in 2014 in a deal valued at $11.2 billion. In 2015, American Realty Capital changed its name to VEREIT Inc. and began trading on the New York Stock Exchange.
Learn more from Tom Roberts of VEREIT at (602) 778-6440. Call Blackbourn at (480) 860-6500. Reach Fijan at (602) 538-3338. Talk to Mast at (602) 735-5206.