George Oliver Pockets $57M for Experiential Office Asset

The property sold for $312 per square foot, setting a record for its Phoenix submarket.

CASA. Image courtesy of George Oliver Cos.

Phoenix-based developer George Oliver Cos. has sold CASA, a 177,522-square-foot, experiential office redevelopment in Phoenix’s Uptown neighborhood. Macquarie Asset Management paid $56.5 million, or $312 per square foot, for the Class A asset, setting a new record for the Piestewa Peak submarket. JLL’s Benjamin Geelan and Brian Ackerman represented the seller.

Initially delivered in 1991 and completely upgraded in 2020, CASA occupies an 8.6-acre parcel at 7878 N. 16th St., in the Camelback East office submarket. The three-story building features 72,000-square-foot floorplans and a parking ratio of 5 spaces per 1,000 square feet, according to CommercialEdge information.

George Oliver acquired the office property previously known as Catalina Terraces for $16.5 million in 2018. The buyer also took out a $23 million acquisition and development loan from Western Alliance Bank and soon kicked off a $17 million renovation plan.

The project came on the heels of the renovation and sale of The Quad, a 14-building, 166,606-square-foot creative office campus in Scottsdale, Ariz. George Oliver had redeveloped the property in partnership with Everwest and WHI Real Estate Partners.

The first of its kind in metro Phoenix

According to Curt Kremer, founder & managing partner of George Oliver, CASA was the first modernized office project in metro Phoenix to put health and wellness at the heart of its design. George Oliver Design worked together with Studio Ma in designing the redevelopment, while RSG Builders implemented the required improvements.

Following the renovation, CASA became rich in health-conscious features such as a wellness center with a yoga room, fitness center and meditation room. Amenities also include a 60-guest conference center, a library, two centralized courtyards, a dog park, shaded outdoor dining and outdoor game and lounge areas.

The building comprises both traditional office and coworking spaces, with CASA Coworking providing access to shared conference rooms, breakrooms and a private coworking lounge.

Kremer said, in a prepared statement, that CASA was fully leased at the time of sale. The tenant roster includes Medicom, Rockwell Automation, City National Bank, Olsson and Phoenix Association of Realtors, among others. JLL’s Ryan Timpani and Nick Bialkowski handle all leasing at the property.

Betting on experiential office space

Apart from CASA, George Oliver has designed and developed several other experiential office projects across The Valley, including The Alexander and The Johnathan in downtown Chandler, Ariz., and Lofts at The District in North Scottsdale, Ariz.

The company’s most recent endeavor targets the five-building, 107,508-square-foot Hayden Station office campus in downtown Tempe. The developer acquired the office landmark for $26.2 million in March, according to CommercialEdge, planning a $14 million transformation for the property that will incorporate retail and restaurant spaces, as well as open-concept interiors.

Office sales across the metro

Greater Phoenix office sales amounted to some $677.7 million and totaled some 4.2 million square feet of space in the first half of 2021. Investors focused on older, Class A buildings—both single- and multi-tenant properties—that had undergone significant renovations in recent years.

One of the larger sales closed in January, involving a property also located in the Camelback East submarket. TerraCap paid $103.5 million, or $307 per square foot, for Anchor Centre West & Anchor Centre East, two office buildings totaling 336,939 square feet.

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