Presson Corp. Pays $72M for Phoenix Office Campus

Since 1998, the campus has maintained an average 90 percent occupancy rate. Image courtesy of Lincoln Property Co.

Presson Corp. has acquired 3131 and 3133 Camelback, a two-building office campus in Phoenix totaling 295,401 square feet, for $72.1 million. LPC Desert West, Lincoln Property Co.’s Southwest division, sold the asset with the assistance of Newmark. The Class A property previously traded in 2017 for $81.8 million, according to CommercialEdge information.

This is actually not the first time Presson acquires an asset from LPC. In August, the firm purchased a 143,653-square-foot, Class A office property in Scottsdale, Ariz., paying once again less than the previous sale price.

A Class A office campus in the Camelback submarket

Rising four stories, 3131 Camelback spans 196,332 square feet with 50,000-square-foot floorplates, while 3133 Camelback comprises 99,069 square feet across three stories, with 35,000-square-foot floorplates. The campus features an outdoor tenant amenity area and conference facility, along with on-site coffee bar and eateries.

LPC has implemented capital improvements at the 1998-completed property during its ownership, including the renovation of its two-story atrium lobbies, the addition of a conference facility and the upgrade of the outdoor tenant amenity area. Following the revamp, the buildings received an Energy Star certification.

The campus has maintained an average occupancy rate of 90 percent, the highest in the metro’s history, according to LPC. Since 2022, the property has seen several new leases, including a 33,254-square-foot commitment from Stewart Title and a 16,891-square-foot lease from Renaissance Financial, along with renewals totaling 25,500 square feet. LPC will continue to provide leasing and management services.

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Located at the intersection of 32nd Street and Camelback Road, the campus is some 8 miles from downtown Phoenix and 7 miles from the Phoenix Sky Harbor International Airport. It is also across the street from the Biltmore Plaza Shopping Center and within walking distance of the AC Hotel by Marriott Phoenix Biltmore.

Newmark Executive Managing Directors Barry Gabel, Chris Marchildon and CJ Osbrink represented LPC in the transaction.

Phoenix office sales dropping

In the first seven months of 2023, 3.6 million square feet of office space traded in Phoenix, for a total of $587 million, amounting to less than half of the volume registered in the same period in 2022, a recent CommercialEdge market update shows. The median per-square-foot sale price of $213, although above the national average of $196, still represented a 23.4 percent year-over-year drop, according to the same source.

In one of the priciest deals of the period ending in July, Virtus Real Estate Capital paid $48.5 million for a 70,000-square-foot medical office building in Phoenix’s Arcadia neighborhood. The facility is part of a $400 million, 750,000-square-foot mixed-use project of RED Development.