JLL Income Property Trust has acquired Fountainhead Corporate Park, a 300,000 square foot, two-building Class A office portfolio comprised of two 6-story buildings located in the Phoenix, Arizona submarket of Tempe for $61.5 million, or approximately $205 per square foot.
The property is located within a master-planned environment that contains Class A office space, multifamily communities, retail and hotels.
It is leased to a diversified mix of investment-grade tenants such as First American Title Company, State Farm Insurance and Coca Cola, as well as financial institutions, engineering firms, tech companies and academic institutions with a weighted average lease term of over five years.
”The JLL Income Property Trust portfolio today exceeds $3.1 billion in assets…”
“The JLL Income Property Trust portfolio today exceeds $3.1 billion in assets with a significant underweight to traditional office properties at just 7% – a property sector that some estimate to be 40% of the commercial property investable universe,” said Allan Swaringen, President and CEO of JLL Income Property Trust.
“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. 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,” he added.