PHOENIX, AZ – Phoenix-based Sperry Van Ness I MVP CRE Advisors has completed its second major General Services Administration (GSA) transaction of the fourth quarter—a $13 million office building (top left photo) sale in Redding, Calif.
The sale was completed by Mark Phillips (middle right photo), GSA specialist and Managing Director of SVN I MVP in Phoenix, Ariz.
According to Phillips, this transaction continues to underscore buyer demand for reliable assets – something the GSA is known for. “GSA is the nation’s largest tenant. Its properties have a history of maintaining or increasing their value in all types of economies,” he said.
The Redding, Calif. GSA building totals 55,594 square feet of Class B office space at 3644 Avtech Pkwy, and is fully occupied by the U.S. Forestry Service. It sold for $13 million, or $233.84 per square foot.
This tops the average asking price for area office space (approximately $200 per square foot) and the average sale price for area office space (approximately $175 per square foot).
“In tertiary markets like Redding, GSA buildings are often valued not only for their investment stability but also for the ‘mission critical’ nature of their operation,” said Phillips. “These are important commodities for smaller towns, and particularly during economic downturn.”
The Forestry Service has been at its Redding, Calif. location for seven years, operating labs, field offices and other functions supporting mission critical services and emergency scenarios.
Phillips represented the property buyer, a New York-based REIT that acquires single-tenant, freestanding properties throughout the U.S. The seller was Redding, Calif.-based Shasta Enterprises, a diversified real estate company and the building’s original developer.
Shasta was represented by Bill Haedrich, President of Redding, Calif.-based Haedrich & Co.
In October, Phillips completed the $7.4 million sale of a 23,485-square-foot GSA building in Sierra Vista, Ariz (lower left photo). The property is fully occupied by the Department of Interior on a 10-year lease and will be used as the National Business Center for the Department of Interior (the purchasing agent for the DOI).
Contact:
Stacey Hershauer
focusAZ
Marketing & Public Relations
(480) 600-0195
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