Newly Completed Tower at Novus Innovation Corridor Attracts Strong Investor Interest
777 Tower at Novus Innovation Corridor in Tempe has sold for an undisclosed price. The sale marks the first speculative office property to be sold within Novus Innovation Corridor, a trailblazing milestone for this innovation zone that, once fully built out, will house facilities that will further bolster Arizona State University’s transformation into a leading global institution.
A joint venture between Ascentris LLC of Denver and Cypress Office Properties LLC of San Diego purchased the property. The seller was Ryan University Realty, LLC, a joint venture between developer and builder Ryan Companies and University Realty, a subsidiary of ASU Enterprise Partners.
“This transaction stands out as the most complex of my career,” says veteran capital markets agent Mindy Korth, executive vice president of Colliers International in Arizona. “The “proof of concept” transaction included an elegantly designed deal structure that focused on current financial success while promoting the long-term resiliency not only for this individual property, but for ASU and all future components contained within Novus Innovation Corridor. The transaction’s success hinged on the excellent cooperation and collaboration of the numerous stakeholder teams – including the owner of the Innovation Zone, ASU; the master developer, Catellus; along with the buyer and seller. It was a privilege to participate in such an important transaction, confirming the results of years of planning that went into creating the project’s vision.”
Korth and her team at Colliers International in Arizona handled the sale transaction.
777 Tower at Novus Innovation Corridor is a six-story, Class A, LEED Gold-certified office property located at 777 S. Novus Pl. Completed in 2020, the tower contains 160,907 square feet of premier office space. Approximately 83 percent of the tower is occupied by long-term, investment-grade tenants Arizona State University and Infosys (NYSE:INFY).
The state-of-the-art 777 Tower is situated in the Novus Innovation Corridor, a 355-acre Innovation Zone at the northeastern portion of ASU’s Tempe Campus. The building’s high-end architectural details and unique landscape and hardscape design are highly visible from the intersection of Rural Road and University Drive in the heart of Downtown Tempe.
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Ascentris is a real estate private equity firm based in Denver, Colorado. With over $2.1 billion in assets under management, Ascentris manages a series of fully discretionary institutional vehicles targeting both core and value-add investments across the major property types and geographic regions within the United States. Since 2003, Ascentris’ management team has relied on an investment philosophy and organizational structure that results in its investors getting to opportunities ahead of the market while receiving an unmatched level of service, transparency and accountability. Ascentris is a privately held and management-owned SEC registered investment adviser that maintains an unwavering commitment to put its investors’ needs first. Additional information is available at www.ascentris.com.
Abut Cypress Office Properties, LLC
Cypress Office Properties, LLC is a San Diego-based real estate investment and operating company that specializes in acquisitions of value-add, redevelopment, and core plus office properties in key markets within the Southwest United States. The company’s primary geographic focus is in Southern California, Phoenix, and Denver, where there is tremendous upside potential. Since its founding in 2009, Cypress has become a qualified and proven investor within these markets – well positioned to identify, purchase and operate office properties that meet its strategic investment criteria. Today, the Cypress portfolio consists of sixteen office projects totaling 3.3 million square feet. For more information, please visit www.CypressOffice.com.
About Ryan Companies US, Inc.
Founded in 1938, Ryan Companies offers comprehensive commercial real estate services as a national developer, architect, capital investment consultant, builder and real estate manager with a focus on bringing lasting value to its customers and the communities in which it works. Ryan market depth includes retail, industrial, healthcare and senior living. Ryan development and corporate build-to-suit work spans a wide range of product types including office, mixed-use, hospitality, multifamily housing and mission critical facilities. Ryan has nearly 1,500 employees in 15 offices and has completed projects in 39 states. For more information, visit ryancompanies.com.
About University Realty LLC
University Realty is a subsidiary of ASU Enterprise Partners, an independent nonprofit organization dedicated to generating resources for the benefit of Arizona State University. For more information, visit www.asuenterprisepartners.org
About Colliers International
Colliers International (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 68 countries, our more than 15,000 enterprising professionals work collaboratively to provide expert advice to maximize the value of property for real estate occupiers, owners and investors. For more than 25 years, our experienced leadership, owning approximately 40% of our equity, has delivered compound annual investment returns of almost 20% for shareholders. In 2019, corporate revenues were more than $3.0 billion ($3.5 billion including affiliates), with $33 billion of assets under management in our investment management segment. Learn more about how we accelerate success at corporate.colliers.com, Twitter @Colliers and LinkedIn.
Colliers International in Arizona has served clients locally and globally for more than 40 years.