Two Former University Of Phoenix Buildings Trade As Value-Add Plays
LNR Partners has sold two buildings in the Riverpoint Business Park, 4150 South Riverpoint Pkwy. and 3125 East Wood St., for an unspecified sum. Both were occupied by the University of Phoenix for its operations center and online division until 2014, when those offices moved to the adjacent newly constructed HQ building in the business park.
Michigan-based West Second Street Associates acquired the 133K SF 4150 South Riverpoint, while Arizona developer Orsett Properties acquired the 52K SF 3125 East Wood St. NGKF’s Michael Garlick repped LNR Partners in both transactions, working with Sean Fulp of NGKF Capital Markets.
"The sale of the former University of Phoenix office buildings is an example of the strength of value-add acquisitions, when timed to coincide with market fundamentals,” Garlick said. “In 2014, the Phoenix market — and owner circumstances — didn't support the renovation needed to reposition these assets. Today’s improving market fundamentals and increasing tenant demand set the stage for these opportunities."
West Second Street Associates plans to reposition 4150 South Riverpoint for large corporate back-office users. Orsett plans to revamp 3125 East Wood to include open and creative office space.