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Freeport-MoMaRan Hits Top Sale

Phoenix Office

In case you missed it, Cole Real Estate Investments just landed the top office sale of the year.

Freeport-MoMaRan Hits Top Sale

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.

Freeport-MoMaRan Hits Top Sale

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.