A local investor team led by Andrew Cohn has scooped up Tempe Office Park from Oaktree Capital Management for $61.5 million, locking down a nearly 300,000-square-foot campus at a time when a lot of office deals are stuck in neutral. The collection of buildings, completed in 2005 and 2007, was almost fully leased when the sale closed, putting it squarely in the camp of stabilized office properties that are increasingly being paired with bigger land and data center strategies in the East Valley.
The transaction was first detailed by Connect CRE, which reported that Oaktree Capital Management sold the nearly 300,000-square-foot suburban office campus to the Cohn-led group and that occupancy at closing was nearly 100%. The outlet also noted that the park, built in 2005 and 2007, is configured as a multi-building suburban office campus.
How the deal was financed
According to The Phoenix Business Journal, the buyer lined up roughly $61 million in new private debt from Verde Investments Inc. to close the purchase. Verde is the firm behind redevelopment efforts at the former Fiesta Mall site in Mesa, and this latest move reinforces its role as a local capital player. The financing also signals that lenders are still willing to back well-leased office assets in the Valley when the fundamentals line up.
Buyer ties and regional land plays
The buyer group is tied to Andrew Cohn, who is active with Levine Investments, a private land owner that reporting says controls thousands of acres across Arizona. Levine and related entities sold 173 acres last March for about $300 million to Tokyo-based NTT Data Group as part of a larger land sale tied to the former GM Proving Grounds, according to Connect CRE. That string of big-ticket land deals helps explain why investors are hungry for nearby stabilized commercial properties that can plug into the same long-term growth story.
What it means for Tempe
For Tempe, the message is clear: well-located, well-leased office campuses can still find eager buyers even as other corners of the office market cool off. A near-100% occupancy rate made this particular campus a standout, attracting investors willing to pay a mid-eight-figure price and line up local financing with established Valley capital partners. For existing owners and tenants, it is one more sign that the right product in the right location still draws a crowd.
