Pinnacle Announces the Sale of Single-Tenant PayPal Office Property Located in Phoenix MSA
Pinnacle Real Estate Advisors, LLC is pleased to announce the $30,500,000 sale of a single-tenant, net-leased PayPal office property located in Scottsdale, Arizona. The 92,562 SF building serves as one of PayPal’s four global, mission-critical Network Operations Centers. The other three Network Operations Centers are located in Silicon Valley, India and Malaysia.
The Class A, three-story PayPal property is located just north of the intersection of 90th Street & Mountain View Road at 9999 N 90th Street in Scottsdale. The building is LEED Silver and Energy Star-certified and features expansive mountain views. The property is less than a half mile east of Loop 101 Freeway with direct access to over 145,000 vehicles per day and strategically positioned next to the 52-acre Scottsdale Shea Medical Campus and the Scottsdale Fiesta Shopping Center.
Rob Edwards and Tom Ethington, Principals, exclusively represented the purchaser, a Colorado-based private family owned real estate company. Steve Lindley, Bob Buckley, Tracy Cartledge of Cushman & Wakefield Phoenix, along with Andrew Bogardus and Douglas Longyear of Cushman & Wakefield San Francisco, negotiated the transaction on behalf of the seller, Los Angeles-based Regent Properties.
“Rents and valuations for office investments are primarily influenced by location, employment growth and strength of tenant but also by a region’s economic growth forecast,” said Tom Ethington, Principal of Pinnacle Real Estate Advisors. “We wanted to target a long-term investment that would experience NOI growth and long-term building appreciation due to positive economic factors. This asset has all of the above.”
The corporately guaranteed lease has approximately ten years remaining and features annual rental escalations, providing a significant hedge to inflation. PayPal provides a payment system that supports online money transfers and serves as an alternative to traditional checks and money orders. PayPal is the world’s largest internet payment provider with 2016 revenue in excess of $10.8 billion. PayPal is an investment grade rated tenant (S&P: BBB) and is publicly traded on the NASDAQ (Symbol: PYPL) with a market capitalization in excess of $95 billion.