LXP Industrial Trust has purchased the former University of Phoenix headquarters campus in Phoenix for $103 million \u2014 a 44% markdown from the $183 million that the seller paid in 2015.<\/p>\n
The campus at 4025 S. Riverpoint Parkway covers 628,192 square feet on about 37 acres in south Phoenix. It holds three office buildings; a 10-story tower and two six-story towers; two parking garages; and a 9,200-square-foot restaurant space.<\/p>\n
LXP bought it from Epic Apollo in an all-cash deal that works out to about $164 per square foot. The University of Phoenix once filled the entire complex and now leases roughly 82,000 square feet through 2031.<\/p>\n
The purchase is a significant departure for the buyer. LXP is a REIT that has primarily invested in Class A warehouse and distribution properties with about 57.8 million square feet across the Sunbelt and lower Midwest. The company has not said what it plans to do with the Riverpoint site, and the campus runs as office space today.<\/p>\n
On the industrial side, LXP has been busy in Phoenix. In April, it pre-leased to a global logistics firm a 1.2-million-square-foot speculative development in the West Valley submarket. The five-year lease starts in December at $9.8 million in initial annual rent, and the project is estimated to cost about $122 million. LXP also brought a fully leased, 488,400-square-foot warehouse into service in the metro last year.<\/p>\n
The discount at Riverpoint fits the ongoing and wider trend of office buildings trading below their former values. Overall, office properties sold for an average of $214 per square foot nationally through the first four months of the year across 798 transactions, according to Yardi research data.<\/p>\n","protected":false},"excerpt":{"rendered":"
LXP Industrial Trust has purchased the former University of Phoenix headquarters campus in Phoenix for $103 million \u2014 a 44% markdown from the $183 million that the seller paid in 2015. The campus at 4025 S. Riverpoint Parkway covers 628,192 square feet on about 37 acres in south Phoenix. It holds three office buildings; a 10-story tower and two six-story towers; two parking garages; and a 9,200-square-foot restaurant space. LXP bought it from Epic Apollo in an all-cash deal that works out to about $164 per square foot. The University of Phoenix once filled the entire complex and now leases…<\/p>\n","protected":false},"author":3163,"featured_media":1672,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[6,5],"tags":[],"class_list":["post-6899","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commercial-real-estate-news","category-office-news"],"acf":[],"yoast_head":"\n