Younan Properties Buys Phoenix Office Tower
This building previously sold for $49 million in 2016.
DPC Cos. has completed the sale of 3200 Central, a 25-story, 350,049-square-foot office building in Phoenix. Los Angeles-based Younan Properties picked up the property for $24.5 million, public records show. A Newmark brokerage team, led by Executive Managing Directors Chris Marchildon, CJ Osbrink and Barry Gabel, acted on behalf of the seller.
The asset’s current sale price was half the one of its previous trade, as DPC had acquired it for $49 million in 2016.
The acquisition of 3200 Central, also known as Great American Tower, marks Younan’s second investment in the Valley of the Sun. The firm also owns 4041 Central Plaza, a 20-story, 405,993-square-foot office tower that it purchased in 2004.
Great American Tower, up close
At the time of its construction in 1985, Great American Tower was the ninth tallest building in Phoenix. The high-rise features 14,000- to 15,403-square-foot floorplates and has an adjacent 1,118-space multi-level parking structure. Its tenants are in the law, financial services and architecture fields.
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During its ownership, DPC invested in cosmetic renovations at the property’s office suites, building systems, lobby and amenity spaces, adding a fitness center, conference facility, deli and bank. In addition to these capital improvements, the tower underwent a previous cosmetic renovation in 2007, according to CommercialEdge information.
Located at 3200 N. Central Ave., Great American Tower is a straight, 2.6 mile shot north of downtown Phoenix. The building is adjacent to the Osborn/Central Ave stop of the Valley Metro Rail system and Sky Harbor International Airport is 4.5 miles southeast.
A mixed bag for Phoenix’s office sector
Year-to-date as of April, Phoenix has seen $349 million in transactions, the fourth highest investment volume in the nation, according to CommercialEdge’s latest office report. The metro’s vacancy rate of 17.5 percent was 130 basis points below the national average. At the same time, the construction pipeline has floundered, amounting to just 650,000 square feet in April, the second smallest in the Western U.S.
One of the largest office sales to close in the metro in the first four months of the year was Columbus Properties’ purchase of 24th at Camelback I, a 302,209-square-foot building in Phoenix’s Biltmore submarket. New York Life sold the Class A asset for $86.1 million in a transaction also arranged by Newmark’s Osbrink team.
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