Apollo-Corp-HQ

CBRE Negotiates $183M Sale of Apollo Headquarters in Phoenix

by Haisten Willis

PHOENIX — CBRE has negotiated the sale of the Apollo corporate headquarters campus. The complex spans 599,664 square feet and is a Class A, three-building, single-tenant office campus located at 4025, 4035, and 4045 S. Riverpoint Pkwy. The sale price was $183 million. In addition to negotiating the sale, CBRE arranged acquisition financing of behalf of the buyer.

Barry Gabel, Chris Marchildon, Kevin Shannon, Ken White and Michael Moore of CBRE represented the seller, American Realty Capital Properties Inc. (ARCP), in the transaction. Crown Properties Inc. represented the buyer, Eric Apollo LLC.

CBRE’s debt and structured finance team, including Bruce Francis, Dana Summers, Bob Ybarra and Shaun Moothart, worked on behalf of the buyer and the lender, Goldman Sachs.

“The metropolitan Phoenix investment market continues to post significant benchmarks towards full recovery,” says Gabel. “This property last traded at $283 per square foot in 2011, and this most recent sale marks a 7.6 percent increase at $305 per square foot. Investors recognize momentum in the market and we expect this is just the beginning of an active and healthy 2015.”

The Apollo Group headquarters campus is 100 percent leased to Apollo Group Inc., a provider of higher education programs for working adults. It is comprised of three office buildings: one 10-story building at 267,962 square feet and two six-story buildings of 165,851 square feet each. The complex also includes two multi-level parking garages. The campus is home to 2,850 executives and employees of Apollo Group.

“The sale of this property is part of our ongoing active portfolio management strategy,” says Thomas Roberts of ARCP. “During the third quarter of 2014 we began evaluating opportunities to bring this high-quality asset to market and maximize its value, capitalizing on the increasing strength of the Phoenix commercial real estate market.”

The campus is centrally located within the Phoenix metropolitan area. It is adjacent to I-10, providing access to Highway 60, I-17 and Loop 202. The campus is located near downtown Phoenix, downtown Tempe and Sky Harbor International Airport.

— Haisten Willis

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