Transwestern Sells and Leases Back 2 Million-SF Industrial Portfolio
Charles Hazen
TEMPE, Ariz. – (Realty News Report) – A partnership between Transwestern Investment Group and JDM Partners LLC has acquired a 2 million-square-foot corporate campus near Phoenix in a sale-leaseback transaction with State Farm Auto Insurance Company.
The 20-acre office campus sits just east of Phoenix, positioned between Arizona State University and Tempe Town Lake.
This Arizona sale-leaseback marks the third major transaction recently completed by Transwestern with State Farm. Last fall, Transwestern acquired State Farm’s 2.2 million-square-foot campus in Dallas’ CityLine project, and earlier in 2017 the firm completed the purchase of State Farm’s 591,000-square-foot Atlanta campus.
“The closing of the Tempe transaction, the third in a series including Dallas and Atlanta, signals the execution of a strategy State Farm designed as a priority several years ago,” said Larry P. Heard, CEO of the Transwestern family of companies. “We have enjoyed a 35-year relationship with State Farm and look forward to helping this outstanding company achieve its objectives for years to come.”
Transwestern Investment Group, which will oversee the investments through a subsidiary, said the sale-leaseback structure benefits both parties by providing steady cash flow from State Farm’s long-term lease while ensuring stable, long-term ownership and professional asset management for the campus.
Houston-based Transwestern will manage the properties on behalf of the partnership.
Located along Rio Salado Parkway, the Arizona property—known as Marina Heights—consists of five buildings within a LEED-certified office park and features ground-floor retail, restaurants and other tenant amenities.
“Marina Heights is a world-class project to add to our portfolio,” said Charles Hazen, President of Transwestern Investment Group. “We have enjoyed working with State Farm and our new equity partner, JDM Partners LLC of Phoenix, on this transaction.”
JDM Partners LLC is led by principals Jerry Colangelo, David Eaton and Mel Shultz.
JDM Partners and Transwestern Investment Group acquired the Arizona properties through a joint partnership named Corporate Properties Trust III LP.
