George Oliver Acquires Office Asset in Metro Phoenix for $38.8M, Plans $14M Redevelopment
CHANDLER, ARIZ. — Phoenix-based developer George Oliver has purchased a two-building office asset in downtown Chandler for $38.8 million. The buyer plans to invest nearly $14 million of additional capital to redevelop the property into a creative office portfolio.
George Oliver purchased the 1987-built Plaza 25 from long-time owner and tenant First Credit Union for $16.3 million. First Credit Union signed a sale-leaseback agreement to continue to occupy the property for a 10-year lease. Including First Credit Union, the building is 79 percent occupied. The new owner will rebrand the property as The Alexander.
Additionally, George Oliver acquired the adjacent, 107,510-square-foot Chandler City Center from Tryperion Partners and Griffin Partners for $22.5 million. Located at 55 N. Arizona Place, the property will be rebranded as The Johnathan after undergoing an almost $3 million initial capital investment plan.
The rebranding are named for the city’s namesake, Alexander Johnathan (A.J.) Chandler.
The Alexander will commence a $5 million shell building transformation in the first quarter of 2020, creating a 112,000-square-foot, five-story, modernized office building at 25. S. Arizona Place. The renovations will improve the building from Class B to a Class A office space, enclosing a current ground-floor plaza and adding shared spaces and a heath-and-wellness inspired amenity package.
The Jonathan will receive upgrades similar to The Alexander to bring modern efficiencies and visually tie the two building together as one. These include an updated exterior paint scheme, a new main building entry sequence, new landscaping, lobby and bathroom improvements, and mechanical upgrades.
Brian Ackerman of JLL represented First Credit Union in the sale-leaseback and helped facilitate the purchase of Chandler City Center. Additionally, John Pierson, also of JLL, served as the leasing expert for Plaza 25.
George Oliver Design is leading the design and architecture for both projects, with RSG Builders serving as general contractor. Western Alliance Bank is the project lender. Ryan Timpani and Todd Noel of Colliers International are the exclusive leasing brokers for The Alexander, while Andrew Cheney and Colton Trauter of Lee & Associates are the exclusive leasing brokers for The Johnathan.