George Oliver and Ascentris buy Scottsdale office building for $26M

George Oliver Companies and Ascentris have purchased a 162,200-square-foot office building in Scottsdale for $26 million, with an eye toward an upscale revamp.

The Phoenix-based developer and Denver-based investor bought the three-story building at 4141 North Scottsdale Road, in Old Town Scottsdale, the Phoenix Business Journal reported.

The seller was an affiliate of Palisades Capital Realty Advisors, based in Los Angeles. The price paid by Palisades Capital for the property was not disclosed.

The deal for the H-shaped building works out to $161 per square foot. Brokers Ben Geelan and Will Mast of JLL represented the seller.

The level of occupancy in the building, which appears via Google to be leased by mostly health care businesses, was not disclosed.

The clay-colored building, built in 1978, was renovated in 2012, according to LoopNet. A defining feature of the Class A offices are its darkly tinted floor-to-ceiling windows behind balconies stretching across every floor. 

George Oliver, which has “repositioned” several office properties in greater Phoenix, plans to begin renovating its latest purchase next year. The anticipated cost of the renovation was not disclosed.

“We continue to see strong tenant demand for thoughtfully designed office space in amenity-rich locations,” Curt Kremer, founder and managing partner of George Oliver, said in a statement. “The location of 4141 at the center of Old Town Scottsdale delivers us arguably the best canvas for our next office reposition.”

The building’s location, plus its large window line and surrounding outdoor space, create the “canvas” for the renovation, Kremer told the Business Journal. The revamp will be led by George Oliver Design, the architecture arm of the firm.

Like many parts of the country, greater Phoenix has experienced a decline in office demand after a broad shift to remote work. The Phoenix metro’s office market ended the first quarter with 2.2 million square feet of negative net absorption over the past year, according to CoStar Group, with demand declining relative to supply.

Office vacancy across the region was 16 percent — with a “flight-to-quality” for tenants and, in turn, landlords, according to the Business Journal.

Major renovation projects are underway like Bond, now being renovated by George Oliver, and the Esplanade, both in the Camelback Corridor, plus Inisio at Kierland near Scottsdale. Brokers have said premium offices can fetch more than $50 per square foot.

Office buildings continue to trade hands in the Phoenix Valley. This week, Texas-based PHX West bought Bank of America’s 534,800-square-foot office campus at 1825 East Buckeye Road for $44.3 million. 

Last month, Columbus Properties jumped into the Phoenix market with the purchase of a 309,400-square-foot office building at 2375 East Camelback Road for $86.1 million.

— Dana Bartholomew

Read more

Commercial

Phoenix

Ryan Companies and Alidade to swap office building for spec industrial in Phoenix

Commercial

Phoenix

Columbus Properties picks up Phoenix office building for $86M

Commercial

National

Macerich eyes 10-story office building at upscale Phoenix mall