Out-of-Town Investors Invade Phoenix

Out-of-town investors are anticipating strong office leasing in greater Phoenix. Recently Missouri-based VanTrust Real Estate acquired the 137k SF Gateway Four at 444 N 44th St in Phoenix for nearly $23M. CBRE's Tim Adelson, who oversaw the deal with colleague Jim Fijan, tells us that the buyer saw it as an opportunity to obtain a Class-A asset in an active submarket at well below replacement cost.

In the last few months alone, Tom adds, the 44th Street corridor has seen a number of leases of more than 10k SF, and he expects that kind of activity to continue. Four Gateway is currently home to a part of State Farm's local operations, but the insurance company will leave the building for its new HQ in 2016. The seller in the deal was California-based LBA Realty.

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