No Office Bubble This Time Around
The investment market for Phoenix office properties is heating up, but it's not overheating as it did in the mid-2000s. That's evident in the recent trade of Security Title Plaza, 3636 N Central Ave, DTZ senior managing director Bob Buckley tells us. Investors Warranty of America sold the 219k SF property to Reven Capital of La Jolla, CA, for $18M. The buyer was president of the company that sold Security Title Plaza for $38M in 2007, Bob points out. Bob's snapped with his his wife, Lisa, and one of this two partners, Tracy Cartledge (right) and his wife, Lourdes.
The recent deal was a unique chance to buy the same building at less than 50% of its peak sales price. Built in 1983, Security Title Plaza is on about four acres at the southwest corner of Central and Weldon avenues in Midtown. The building has a five-story parking structure, 18k SF floor plates and balconies in the tenant spaces. Bob says the new owner has the opportunity to drive occupancies and rent, since the building is about 52% occupied.
