Lincoln Property Sells Phoenix Office Asset

August 17, 2023

The building underwent extensive renovations prior to the sale.

During its ownership, Lincoln Property Co. made multiple improvements to Gainey Center in Scottsdale, Ariz. Image courtesy of Lincoln Property Co.

Lincoln Property Co. has sold Gainey Center, a 143,653-square-foot, Class A office property for $26.5 million in Scottsdale, Ariz. Presson Cos., headed by President Daryl Burton, is the new owner. The asset last changed hands in 2016, when Invesco Real Estate sold it for $35.3 million, CommercialEdge data shows.

Newmark Executive Managing Directors Barry Gabel and Chris Marchildon negotiated on behalf of Lincoln Property Co. Tenants at the property include J.P. Morgan, Scottsdale Wealth Advisory, Capital West Insurance and SNL Financial, among others, the same source reveals.

Built in 2000, the three-story office building includes 49,000-square-foot floor plates, two passenger elevators, private balconies, on-site security and 522 parking spots. During its ownership, Lincoln Property Co. made multiple capital improvements at the property, including the renovation of the property’s lobby, that now features an upgraded atrium, as well as modernized restrooms, corridors, mechanical systems and elevator banks. Other upgrades were made to the building’s landscape plans and signage systems.

Located on approximately 5 acres, Gainey Center is close to the intersection of Scottsdale and Doubletree Ranch roads, as well as Loop 101, offering immediate access to The Shops at Gainey Village, 4 miles from Scottsdale Airport, 16 miles from Phoenix Sky Harbor International Airport and within 18 miles of downtown Phoenix.

Phoenix: Leading Western market for office sales

In terms of sales volume, Phoenix outperformed multiple Western markets this year as of June, a recent CommercialEdge report shows. With $415 million in office assets changing hands, Phoenix was followed by the Bay Area ($407 million), San Francisco ($378 million) and Denver ($255 million). The only two markets with larger sales volumes in the West were Los Angeles ($1.1 billion) and San Diego ($482 million).

Recent office deals in the area include Zeitlin Capital’s acquisition of Chandler Corporate Center I and II, two Class A, mid-rise office buildings. Cushman & Wakefield represented the seller.