February 11, 2020
JLL Income Property Trust (JLLIPT) acquired Fountainhead Corporate Park, a 300,000-square-foot, two-building, Class A office campus in Tempe, AZ. The Chicago buyer paid $61.5 million for the property at 1501 and 1620 W. Fountainhead Pkwy. The seller was not disclosed; public records indicated Cypress Office Properties of San Diego as the previous asset owner.
Fountainhead Corporate Park’s tenant mix includes First American Title Co., State Farm Insurance and Coca-Cola, as well as financial and academic institutions, tech companies and engineering firms. The weighted average lease term is over five years.
“While we intend to maintain an underweight to the office sector, this investment at an over 40% discount-to-replacement cost and with in-place rents well below current market comparables presents an attractive addition to our portfolio,” said JLLIPT’s Alan Swaringen. “Further, asking rents in this submarket have grown by an astounding 50% over the last five years, and Tempe continues to boast strong market fundamentals.”
For comments, questions or concerns, please contact Amy Sorter