H
ines has sold a 306,900-square-foot office building in Phoenix's Biltmore area for $97.9 million, the largest local office sale of the year. The buyer was Reno-based Solar Farms, an LLC led by Roger William Norman, which paid all cash for the property at 2325 East Camelback Road. Brokers Will Mast and others from JLL represented Hines in the deal.
The sale works out to $319 per square foot, a significant price considering the building's location near popular shopping centers like the Shops at Town & Country and Biltmore Fashion Park. The office tower, 24th at Camelback II, was 87% leased to tenants such as Blue Origin and Squire Patton Boggs.
The sale comes six months after New York-based Columbus Properties bought the adjacent building for $86.1 million. Hines built both properties in an 8.5-acre mixed-use development. The office market in Phoenix is showing resilience, with a vacancy rate of 20.2% in the third quarter, according to CBRE.
"This sale highlights investor confidence in the region's economic fundamentals and signals a positive shift in the office sector," said Will Mast of JLL. "Well-located, quality office properties continue to attract significant investment, highlighting Phoenix's growing stature as a prime destination for commercial real estate investment."
