Under Contract Value-Add Office Building in the Heart of Central Phoenix
3033 N Central Ave Phoenix, AZ 85012
- 79,234 Square Feet
- For Sale
Under Contract: 3033 N Central Avenue consists of ±79,234 square feet within a nine-story, condominiumized office building in Phoenix, Arizona. An extremely unique, value-add investment opportunity that is located on Central Avenue across from Park Central Mall in the heart of Midtown Phoenix, it is currently 68 percent leased. This offering represents 59 percent of the overall building area that totals ±133,168 square feet. The balance of the building that is not a part of this offering is owned by 14 individual condominium owners who operate their respective businesses from their owned facilities.
Visit our property website to view the offering memorandum.
The Midtown Phoenix market is going through a rebirth, attracting a wide range of employers and new residents as its “live, work, play” offering continues to expand. Office rental rates are growing at an accelerated pace, yet are still very affordable when compared to the area’s more expensive neighbors. Vacancy rates have declined to 22.2 percent by the first quarter 2017; and with no projects under construction or planned for this area, Midtown’s vacancy will continue to tighten.
This offering provides investors the opportunity to purchase a building with tremendous upside at a fraction of replacement cost, and at a time that the Midtownsubmarket is poised for rapid recovery.
Minimal investment to secure a signification position on Central Avenue. This is an affordable approach for an investor to enter the urban office market with a value-add play. The offering is for 59 percent of the overall building area, and excludes the obligation to purchase parking. The tower owns the perpetual right to use parking in the adjacent third-party owned parking garage, at a 4.3 per 1,000 SF parking ratio. Essentially, the investment only requires the funding for the building, at a “value-add” price.
Numerous Exit Strategy Options
3033 N Central offers several exit strategy options. These include to own, lease and manage the entire acquisition while stabilizing its occupancy; to pursue a re-purchase program of existing condo owners to expand the investment; or to sell some or all of the individual units as the market improves in the Midtown area.
Located in the heart of Midtown Phoenix, 3033 N Central offers amazing connectivity to the rest of the metropolitan area through the Metro light rail transportation system, Rapid transit bus lines and the I-17, I-10 and SR51 freeway systems. More than 3.9 million people can reach this location within a 40-minute commute (i.e. 92 percent of the population of Maricopa County). This Midtown location also offers many walkable amenities including the Hilton Phoenix Suites—a 223-room hotel that is currently being renovated and will change to Embassy Suites once complete, and numerous quick-serve and full-service restaurants.
Renewed Interest in Urban Infill
Midtown has benefited greatly from the urban infill movement. Nearly 2,000 multifamily units are currently under construction or planned for the immediate area. This new multifamily activity combined with new restaurants and other amenities, as well as convenient light rail access have helped rebrand the area into a corridor for startups, technology companies and unique local businesses.
Affordable Rental Rates
Compared to its neighboring submarkets, Midtown offers an amazing value to companies. Downtown Phoenix and Camelback Corridor average asking rents are 33 percent and 36 percent higher than those of Midtown. With an average rent of $21.66, this truly transit-oriented location has become an infill hot spot for entrepreneurial businesses.
Area Available: 79,234 Square Feet
±2.68 acres (±116,895 SF)
- Subject Property Current Building Size ±79,234 SF
- Condos (NAP) Current Building Size ±53,934 SF
- Entire Building Current Size ±133,168 SF
- Subject Property Re-Measured Building Size ±80,230 SF
- Condos (NAP) Re-Measured Building Size ±53,934 SF
- Entire Building Re-Measured Building Size ±134,164 SF