Newmark completed the $91.7 million sale of Raintree Corporate Center, an institutional-quality office project in Scottsdale, AZ. Situated on ±11.6 acres, the 345,417-square-foot, multi-tenant property is 90 percent leased.
CJ Osbrink, Kevin Shannon, Ken White, Brad Burton, and Paul Jones of Newmark’s Capital Markets team represented the seller, Equus Capital Partners. The buyers, funds managed by Oaktree Capital Management, L.P. (“Oaktree”) and Cypress Office Properties, were self-represented.
Built in 2007-2008 and located at 8800 and 8888 East Raintree Drive, Raintree Corporate Center consists of two, three-story, multi-tenant office buildings featuring a six-level parking garage and various on-site amenities including a deli/restaurant and fitness center. The property is located in the Scottsdale Airpark submarket, one of the best performing and desirable submarkets in the greater Phoenix MSA. Raintree Corporate Center is home to major national and global tenants including the headquarters of Meritage Homes and regional hub for The Hartford.
“Raintree Corporate Center offered new ownership an opportunity to acquire a highly amenitized and institutionally owned and managed office project with attractive going in yields and realistic short-term and long-term embedded value,” said Osbrink.
Mark Jacobs, Managing Director and Co-Portfolio Manager of the Oaktree Real Estate Income strategy added, “Raintree fits the desirable asset profile we look for when deploying capital in our real estate strategy - high-quality, stable tenant base; modern office product without competition from new supply; and location in one of the best submarkets within a high growth market in which we have significant investment experience.”
Raintree Corporate Center is located within one mile of the TPC Scottsdale Golf Courses, home of the world-renowned Waste Management Phoenix Open, and within a half mile of the Scottsdale Airport, the second busiest single-runway airport in the country. Additionally, the property has direct access to and visibility along the Pima Freeway, which has traffic of more than 160,000 vehicles per day.
Oaktree is a leader among global investment managers specializing in alternative investments, with $124 billion in assets under management as of September 30, 2018. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in credit, private equity, real assets and listed equities. The firm has over 900 employees and offices in 18 cities worldwide.
Cypress Office Properties, LLC is a San Diego-based real estate investment and operating company that owns and actively seeks to acquire value-add and core plus office properties in key markets within the Southwest United States. Cypress was founded in 2009 and currently owns and operates a portfolio totaling approximately 3 million square feet. Cypress actively seeks joint venture partnerships with high quality private equity firms in pursuing its investments goals. Please visit www.cypressoffice.com.
Newmark (“Newmark”), operated by Newmark Group, Inc. (“Newmark Group”) (NASDAQ: NMRK), is one of the world’s leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, Newmark’s 16,000 professionals operate from approximately 430 offices on six continents. Newmark’s investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. For further information, visit www.ngkf.com.
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