Dealmaker: CBRE Closes $71M

CBRE, Los Angeles, closed $71.3 million in office and retail transactions in Scottsdale, Ariz.

The firm negotiated the sale of Wells Fargo Gainey Center, a 141,000-square-foot Class A office building. Connect Media reported AREA Exchange Asset III LLC, New York, acquired the property from Principal Real Estate Investors, Des Moines, Iowa, for $43.5 million.

Barry Gabel, Chris Marchildon and Will Mast of CBRE in Phoenix represented Principal in the transaction. Bruce Francis, Tim Bokinsky, Dana Summers, Bob Ybarra, Shaun Moothart and Doug Birrell of CBRE Debt & Structured Finance placed the acquisition loan with a national life insurance company.

Built in 1999, Wells Fargo Gainey Center has been institutionally owned and managed since its inception, Gabel said.

The building was 96 percent leased at closing to nine tenants including Wells Fargo and national law firm Kutak Rock.

CBRE Capital Markets Debt & Structured Finance also secured $27.8 million in financing for 138,500-square-foot grocery-anchored retail center The Shops at Gainey Village.

Summers, Francis, Moothart, Steve Roth and Ryan Keiser of CBRE originated the 10-year full-term interest-only debt at 3.0 percent.

“The borrower selected a lender that provided not only the most competitive price and terms, but also proved to deliver certainty of execution during an extraordinarily challenging and volatile time in the market,” said Summers.

Built in 2001, The Shops at Gainey Village underwent a partial renovation and repositioning in 2018 that included adding grocery space now occupied by Sprouts Farmers Market. Last year the property reached full occupancy when Stretch Lab, IYA Rejuvenation Center, POSH Shop and Kaleidoscope signed leases.