Cole Acquires $56M Office Portfolio; Walton Street, Everest Holdings Pay $24M for Tempe Office Building

By Amalia Otet, Associate Editor

In a $23.5 million deal, a joint venture of Chicago-based Walton Street Capital L.L.C. and Scottsdale-based Everest Holdings has acquired Elliot Corporate Center, a 223,392-square-foot Class B office building in Tempe.

Jim Fijan and Will Mast of CBRE Group Inc.’s Phoenix office represented the seller, a tenants-in-common group sponsored by Thompson National Properties L.L.C. of Costa Mesa.

“This transaction is another example of the continued demand for office investment properties in the southeast Valley,” said Fijan in a statement. “Savvy investors recognize the continued strengthening of the market and well-located, well-taken-care of assets, like Elliot Corporate Center, are going to be well received.”

Located at 875 E. Elliot Road, the two-story, Class B office asset was 87% leased at the time of the sale. The University of Phoenix is the anchor tenant, occupying 162,069 square feet. Lamson Business College occupies another 32,400 square feet. Built in 1998, Elliot Corporate Center offers a wide range of amenities as well as access to Interstate 10 at Elliot Road.

In other office acquisition news, Business Real Estate Weekly of Arizona reported that an affiliate of Cole Real Estate Investments acquired three properties totaling  304,637 square feet in Phoenix and Tempe for $56.3 million, equivalent to $185 per square foot on average. The seller was LBA Realty in Irvine, California.

The assets are the 122,646-square-foot DeVry Building at 2149 W. Dunlap Ave., which serves as DeVry University’s Phoenix campus and traded for $23 million; Cotton Center II, a 99,734-square-foot back-office building located in the Cotton Center Business Park at 4121 E. Cotton Center Blvd., Phoenix ($18.9 million); and the 82.257-square-foot Rio Salado Corporate Center (pictured at right). Located at 1415 W. 3rd Street in Tempe, the property sold for $14.4 million, according to BREW.

Photo credit: LBA Realty