Newmark : Facilitates $86.1 Million Sale of 24th at Camelback I in Phoenix, Arizona

Photo credit to Scott Sandler

April 29, 2024 9:00 AM

Newmark announces it has arranged the sale of 24^th at Camelback, a 308,481-square-foot Class A office asset in Phoenix's Camelback Corridor. Marking the largest office sale in Phoenix since 2022[1], the asset sold in an all-cash purchase for $86,100,000.

Newmark Executive Managing Directors Barry Gabel, Chris Marchildon and CJ Osbrink, along with Co-Head of U.S. Capital MarketsKevin Shannon, represented the undisclosed institutional owner. The buyer was a family office based abroad.

"The sale of 24th at Camelback underscores the growing appeal of premium office assets to active private investors," said Gabel. "This transaction signals strong confidence in the Phoenix office market, particularly within the Camelback Corridor, and highlights the enduring value and attractiveness of well-located, institutional-grade office properties in today's market."

Located at 2375 E Camelback Road, the institutional-quality property is a LEED Platinum certified, eight-story office tower developed in 2000 by Hines. Situated at the intersection of 24th Street and Camelback Road, the asset presents unparalleled access to the greater Phoenix market.

"This offering garnered substantial investor attention given its flight-to-quality profile and location, attractive weighted average lease term (WALT) and heightened leasing demand," Osbrink added. "Situated in one of Phoenix's most vibrant and sought after office submarkets and boasting status as one of the MSA's highest-caliber office developments, it presents a compelling investment opportunity for new ownership."

24th at Camelback offers a wealth of amenities, including a newly constructed fitness center, on-site dining options, shared tenant conference facilities and 24/7 security. Parking is available in two subterranean levels and in a detached six-level above grade parking structure.

The Camelback Corridor stands as a testament to Phoenix's vibrant commercial landscape, characterized by high barriers to entry and robust market fundamentals. Spanning approximately 6.8 million square feet, this core office submarket has continued to be an epicenter of office real estate activity across Metro Phoenix, attracting tenants from technology, finance, legal, insurance and consulting sectors. Recent market trends reveal a surge in rental rates within premier Class A buildings like 24th at Camelback, with lease rates surpassing $50 per square foot (full-service gross), signaling sustained growth and investor confidence in this dynamic submarket, according to Newmark Research.

[1] According to CoStar analytics

About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries ("Newmark"), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark's comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform's global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. For the year ending December 31, 2023, Newmark generated revenues of approximately $2.5 billion. Newmark's company-owned offices, together with its business partners, operated from approximately 170 offices with 7,400 professionals around the world. To learn more, visit nmrk.com or follow @newmark.

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