More than 115,000 square feet have traded hands in a historic deal for a Phoenix office building.
Oklahoma City-based Humphreys Capital purchased Camelback Collective, located in Phoenix's Camelback Corridor for $66.35 million. At $573 per square foot, however, the investment firm's acquisition of Camelback Collective was a record sale, according to Cushman & Wakefield.
The price per square foot for the Camelback Collective deal surpasses Grand at Papago Park Center II sold in December 2020 for $522 per square foot ($187.5M total) to APEX Capital Investments Corp. and RED Development selling Block 23, in downtown Phoenix for $150 million at $488 per square foot to City Office REIT in December 2021.
The Camelback Collective deal closed Tuesday. Steve Lindley, Eric Wichterman, Alexandra Loye, and Mike Coover, with Cushman & Wakefield, represented the sellers in the transaction — Holualoa Cos. and LaPour Partners.
Camelback Collective, at 2801 E. Camelback Road, was completed in 2018. It was the first new-build office space in the Camelback Corridor in 10 years. Construction started on the office building in February 2017.
Lindley said Humphreys Capital did not have a broker who represented them in the deal. Cushman & Wakefield’s Jerry Roberts and Pat Boyle provided leasing advisory for the deal and will be the listing brokers for Humphreys Capital, Lindley said.
“Even with the record price per square foot, the investment represents exceptional value for the buyer,” Lindley said in a statement. “Rents at Camelback Collective are 15 to 20% below recently signed leases at other modern trophy properties and given rapidly increasing construction costs the price is near today’s replacement cost.”
The four-story office building is about 95% leased with just one 5,714-square-foot suite left.
The building's two largest tenants account for a combined 43% of the rentable space at the building. PNC Bank occupies 26,923 square feet and investment firm Stifel, Nicolaus & Co. Inc. takes up 22,734 square feet.
“Camelback Collective is a generational trophy-quality office asset in a prestigious Camelback Corridor location, with secure investment income,” Wichterman said in a statement. “The building has all the features in demand by modern tenants, enhanced by stunning views through floor-to-ceiling glass which are unique in the market, as well as a synergetic AC Hotel by Marriott lifestyle hotel on site.