Dealmaker: Newmark Closes $53M Office Property Sale

Newmark, New York, sold Gilbert, Ariz., office property The Reserve at San Tan for $53.1 million.

Orsett Properties, Phoenix, sold the property to West Valley Properties, Los Altos, Calif. Newmark Executive Managing Director CJ Osbrink and Managing Director Scott Scharlach closed the sale with Co-Head of U.S. Capital Markets Kevin Shannon.

The Reserve at San Tan is a 149,321-square-foot Class A office complex on 12.7 acres. Built in 2020, the property has two three-story multi-tenant office buildings connected by a common area tenant lounge.

“This offering generated significant investor interest as a result of its best-in-class new construction, attractive weighted-average lease term and increased tenant demand,” Osbrink said. He called Gilbert one of the most active office submarkets in the Phoenix area.

The Reserve at San Tan sits within the Southeast Valley, a submarket that has attracted tenant interest due to its diverse labor pool, access to multiple highways and proximity to new affordable housing. Nearly 40 restaurants and more than 1.2 million square feet of retail lie within a five-minute walk from Crossroads Towne Center.

Newmark Research said the metro Phoenix office market avoided many obstacles other large metros experienced due to COVID-19. Its market vacancy remains below its 2016 and 2017 levels.