Real estate investment managers Equus Capital Partners recently announced an affiliate has completed the sale of Scottsdale Gateway I, a 107,049 square-foot, two-story, class-A office/medical building.
The property was originally part of a two-building office portfolio --- which Equus acquired in 2014 on behalf of BPG Investment Partnership IX, L.P., a discretionary fund the firm managed. Scottsdale Gateway I, which was 96% occupied at the time of sale, was sold for $27 million.
Benjamin Geelan and Andrew Milne of Jones Lang LaSalle represented the seller in the sale transaction and Bryan Taute of CBRE was the leasing agent on the assignment.
Built in 1998, Scottsdale Gateway I sits on 8.5-acres and features a parking ratio of 5.8 per 1,000 square-feet and additional development potential.
The building has a two-story atrium lobby with floor plate sizes of approximately 58,000 square feet which provide functional layouts for small, medium and large-size tenants.
“Equus’ capital improvement program, including lobby renovation, new monuments signage, as well as numerous exterior upgrades, has positioned the property for long term asset value from a strong tenant roster with long-term history at the property,” Robert Butchenhart, vice president for Equus and manager for Equus’ West Coast office, said in a prepared statement.
“Scottsdale Gateway I offers a unique blend of credit and medical related tenancy offering the buyer the opportunity to acquire an asset in a growing, thriving market poised to rebound quickly. The fact that the asset is 96% leased with a strong sub-market occupancy supports the investment thesis on being able to push rents going forward.”
Mr. Butchenhart oversaw the transaction along with Christopher Locatell, senior vice president and director of dispositions.
Scottsdale Gateway I is adjacent to Honor Health’s 427-bed Scottsdale Shea Medical facility and has visibility from both 92nd Street and Mountain View Road. Situated less than a mile east of the Arizona Loop 101 freeway, Scottsdale Gateway I is positioned within the Central Scottsdale submarket.