Freeport-MoMaRan Hits Top Sale
In case you missed it, Cole Real Estate Investments just landed the top office sale of the year.
American Realty Capital Partners (which acquired Cole REIT earlier this year) just bought the office portion of Freeport McMoRan Center for $110M (or $441/SF) from National Real Estate Advisors. Here's the catch: While the entire 26-story tower is 485k SF, ARCP only purchased 249k SF occupied exclusively by Freeport McMoRan Inc (the remainder of the building includes a parking deck and The Westin Phoenix Downtown--not part of this sale). Should any of us be shocked that CBRE's Jim Fijan (here) along with Will Mast were the architects of this off-market deal? Jim was unavailable for comment.
According to filings by Cole REIT with the SEC, Freeport's lease goes through 2027, with rents now at $30/SF, slated to eventually escalate to $38/SF. That has the firm paying annual rents currently around $7.4M and ending at $9.36M. So far this year, this office sale is only the second in Phoenix to KBS REIT III's $85M May purchase of Anchor Centre and USBC Real Estate's nearly $60M buy of US Bank Center at 101 North, a 373k SF Downtown tower, late last month. Both were sold by Angelo, Gordon & Co.