EQT Exeter Property Group has acquired a three-building office and industrial property in the Price Road Corridor in Chandler, Ariz. CBRE represented the seller, Digital Realty Trust.
The 241,676-square-foot property consists of 1890 and 1900 S. Price Road and 3200 W. Germann Road, in a 5-square-mile area of Chandler often referred to as the “Silicon Desert.” The campus comprises a two-story 41,590-square-foot office building; a three-story 76,398-square-foot office building; and a 123,688-square-foot industrial building.
The deal’s dollar value was not disclosed, and EQT Exeter did not reply to Commercial Property Executive’s request for additional information.
Originally a build-to-suit for semiconductor packaging provider Amkor Technology, the property is now vacant, and EQ Exeter Property Group reportedly plans to reposition it.
The location offers easy access to the Loop 101 and Loop 202 Freeway interchange and is close to the Chandler Fashion Center and other amenities.
The three Class A properties were built on the 17.9-acre site in 1996 and last traded in January 2013, when Digital Realty Trust bought the campus for $24 million, according to information provided to Commercial Property Executive by CommercialEdge.
CBRE’s Barry Gabel, Chris Marchildon and Will Mast represented Digital Realty.
Marchildon commented in a prepared statement that fully vacant value-add office and flex opportunities of this size and quality are very rare in metro Phoenix. He added: “This former corporate headquarters campus offers … an opportunity for the buyer to transform it for future office leasing at a significantly lower cost than a ground-up development.”
The Phoenix metro office market is plagued by net occupancy losses and rising sublease space, though Class A space did see positive absorption in the first quarter, according to a new report from JLL. In response, JLL says, “Landlords have opted to adjust concessions rather than asking rates.”
Overall vacancy stands at 19.5 percent, with sublease vacancy totaling about 1.9 million square feet, against a total inventory of 96.0 million square feet.
In the Chandler submarket, Class A space totals 3.7 million square feet, with a total vacancy of 18.0 percent. Development activity has been modest: Just 120,000 square feet has been delivered this year, and only a further 300,000 square feet is under development, also according to JLL.
Last October, Exeter Property Group acquired a 1.2-million-square-foot industrial property in Newville, Pa., for $85 million.
Back in June 2019, Exeter had purchased a 123,754-square-foot warehouse in Phoenix’ Southwest Valley submarket.