Irgens Sells Phoenix Office Asset
A group of private investors have acquired 501 Gateway, a 102,305-square-foot, recently renovated office building in Phoenix, for $18 million. Irgens previously owned the asset, according to CommercialEdge information. Cushman & Wakefield represented the seller.
The property was 82 percent leased to a diverse tenant mix at the time of sale, including Knight Management and the County of Maricopa.
Irgens had purchased the asset for $17 million in 2016, the same source shows. A $16.1 million loan from Western Alliance Bank financed the acquisition.
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That same year, the 1997-completed property at 501 N. 44th St. underwent cosmetic renovations. The four-story building features floorplates averaging 25,500 square feet and structured parking with a parking ratio of 5 spaces per 1,000 square feet. Amenities include a contemporary lobby and a café with indoor and outdoor patio seating.
The transit-oriented property is some 2 miles from Phoenix Sky Harbor International Airport. Downtown Phoenix is roughly 6 miles southwest.
Cushman & Wakefield Executive Managing Directors Eric Wichterman and Chris Toci, along with Managing Director Mike Coover, brokered the deal on behalf of Irgens.
Phoenix office sales remain steady
Phoenix’s office investment volume year-to-date as of November reached $1.1 billion, according to a recent CommercialEdge report. Assets traded for $164 per square foot on average, slightly below the $179 national figure.
In the metro’s largest transaction of the year so far, Wide Open Excursions acquired 24th at Camelback II for $97.9 million. Hines sold the 306,877-square-foot Class A asset.
More recently, U-Haul paid $23.7 million for 20 E. Thomas Road, Arizona’s third tallest office tower. The deal marked the largest owner/occupier office sale in the Southwest since early in the pandemic.
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