Engineering Firm Pays $4M for Two-Building Complex

TEMPE, AZ- In an effort to decrease its occupancy costs, a local engineering firm has acquired a two-building, 48,853-sf office complex where it plans to occupy 15,000 sf. McMardon LLC purchased Gateway Court for $4.4 million from Equus Phoenix I LLC of La Jolla, CA.

Located at 1430 and 1438 W. Broadway Rd., the class B buildings are 60% leased with Murray, UT-based Mountain West Telecom as the lead tenant, says Jeff Hartland, SVP of Grubb & Ellis-BRE Commercial LLC, who represented Equus Phoenix in the deal. Hartland was assisted by Laurel Lewis, Eric Wichterman and Stan Shafer, also of with Grubb & Ellis-BRE Commercial. McMardon was represented by Jeff Jennings with Phoenix-based ProStar Realty.

Hartland tells GlobeSt.com that McMardon will be able to reduce its occupancy costs by 50% or more through its purchase and occupancy of Gateway Court. The firm is relocating from 4440 South Rural Rd. “The economics of Gateway Court were favorable with the other rental income in place,” Hartland says. “And it offers excellent freeway access and a central location.”

Built in the early 1980s, Gateway Court consists of two, two-story buildings that are connected by a breezeway. Equus Phoenix owned the complex for several years and was actively searching for tenants when it decided to sell the building, Hartland says. “We had it for lease, but the B leasing market was proving a bit challenging, so we then transitioned from for lease to for sale,” he explains. The complex leases for $16 per sf.