Why Now's A Good Time To Sell Suburban Phoenix Office

Columbia Property Trust inked a deal recently to sell SanTan Corporate Center in Chandler for $58.5M to a private buyer; at the same time the REIT sold an office building in Dallas. "We felt the time was right to realize the value of these assets," said Columbia Property Trust CEO Nelson Mills.

The 267k SF SanTan Corporate Center at 3100 and 3200 West Ray Road includes two buildings, built in 2000 and 2003 and acquired by Columbia in 2006. "We completed successful leasing programs at both these properties over the last several months, which, combined with their respective locations in solid metro submarkets, positioned each to attract high demand among potential buyers,” Mills said.

The suburban Dallas property is the 315k SF CVS Health Tower in Irvine. Columbia will use the $109.5M in proceeds from the sales for reinvestment in its target markets, which include NYC, Washington, DC, and San Francisco.

SanTan Corporate Center I is fully occupied by Toyota Financial Services, which recently renewed to remain at the property through 2024. SanTan Corporate Center II is leased to various tenants, including Dialog Semiconductor, a UK-based manufacturer of semiconductor-based system solutions, and Isola USA, part of the global material sciences company Isola Group.

With the sale, Columbia exits both Phoenix and Dallas as part of its effort this year to take advantage of strong valuations in non-core markets and sell. The company has completed $660.5M of dispositions in 2016, including a property in suburban Denver.

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