CBRE has completed the sale of a commercial property poised for redevelopment, which is located at the southeast corner of Camelback and Scottsdale Roads in Old Town Scottsdale. The sale of the ±2.72-acre site (±118,630 square feet) included the ±67,691-square-foot multi-tenant office property at 7201 E. Camelback Road and the ±1,020-square-foot retail property located at 7216 E. Shoeman Lane. The asset commanded a record sale price of $22.625 million, or just over $191 per square foot of land area. The property will likely be rezoned for more density and redevelopment over the next 24 months.
Jim Fijan and Will Mast with CBRE’s Phoenix office negotiated the transaction. The seller was Jerry Simms of Scottsdale and Ron Simms of Los Angeles. The buyer was an entity that included Triyar Companies of Scottsdale (Shawn and Steven Yari, principals).
“Old Town Scottsdale is one of the hottest submarkets in the metro area, and the record price per square foot of land is a reflection of that fact,” said CBRE’s Fijan. “This property clearly is what we like to call irreplaceable real estate. That term can be over used, but in this case it is right on the money.”
“The Old Town Scottsdale market has emerged as a tech hub for office users as well as the hotspot for millennial workers who tend to flock to work/live/play environments. Over the last 18 months Old Town Scottsdale, downtown Tempe and downtown Phoenix are leading the market in appeal for this workforce.”
This is the second sale of a major infill redevelopment site in Scottsdale by Fijan and Mast. Earlier this year, the team sold a ±3.26-acre parcel at the northeast corner of Highland Avenue and Camelback Road. The property sold for $15 million, or just over $105 per square foot of land area.
“Infill properties that offer the opportunity for high-density projects are going to continue to drive development trends,” continued Fijan. “Today’s workforce wants modern amenities in an urban setting. I think the Valley is just seeing the tip of the infill development iceberg. We’re going to see a lot more of these transactions heading into the New Year.”
According to CBRE Research, the South Scottsdale office submarket, which encompasses Old Town, continues to have one of the lowest office vacancy rates in the Valley reporting 8.5 percent vacancy overall as of Q3 2015, and 6.1 and 6.2 percent for class A and B space, respectively.