CBRE has completed the $18.2 million sale of The Brookstone, a two-building office and medical campus in the heart of Midtown Phoenix to a San Diego-based investor.
CBRE’s Geoffrey Turbow, Gary Cornish, Matt Pourcho, Anthony DeLorenzo and Bryan Johnson represented the seller in the transaction.
The two buildings at 340 E Palm Lane and 2025 N 3rd St. are 63,128 square feet and 63,378 square feet, respectively. The Brookstone features courtyards, koi ponds, balconies, common areas, and suites for multiple renters. The property has had an average occupancy rate of 89 percent over the past five years, with tenants including Honor Health, Signature Dental Partners, Alzheimer’s Association and The Florence Immigration and Refugee Rights Project.
“The Brookstone is an exceptional property that has attracted significant buyer demand within weeks of being placed on the market,” said Turbow. “Most of the interest came from Southern California, including the buyer, a San Diego-based 1031 stock market investor who beat five other bidders. This buyer became non-refundable after escrow was opened.”
Pourcho added, “We continue to see cash flowing into Phoenix from California, particularly from high net worth 1031 Exchange buyers. The Brookstone was a unique opportunity to acquire a premier value-add office with exceptional short- and long-term potential.”
The Brookstone’s central location in the historic district of Los Olivos provides renters with access to the central business district, hotels, museums, theaters and restaurants. The property is also close to Sky Harbor International Airport, downtown Phoenix, Footprint Arena and Chase Field.
Office leasing activity in Phoenix for the fourth quarter of 2021 was up as evidenced by the Metro’s positive net absorption totaling 314,247 square feet and particularly the positive net absorption of 472,797 square feet in the suburbs, according to CBRE research.
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