JDM Partners, Transwestern Finalize 2 Million-SF State Farm Office Deal in Arizona

State Farm has sold and leased back the 370,000-square-foot building it developed at 300 Rio Salado Parkway and four other office buildings in the Phoenix metro.

A partnership between Transwestern Investment Group (TIG) and JDM Partners LLC led by principals the principals Jerry Colangelo, David Eaton and Mel Shultz has wrapped up the acquisition of Marina Heights, a five-building office campus on 20 acres from State Farm Automobile Insurance at 300 – 600 Rio Salado Parkway in Tempe, AZ.

The price was not disclosed, although the sale-leaseback deal was valued in one report by a local media outlet at about $928 million. The Tempe transaction is the third in a series of sale-leasebacks undertaken by the giant insurance company. Last fall, State Farm sold its 2.2 million-square-foot campus in the CityLine project in Dallas and traded the 591,000-square-foot State Farm campus in Atlanta this past summer.

State Farm built the five office buildings ranging from 271,000 square feet to 620,000 square feet in 2015 and 2016, according to CoStar information.

The Corporate Properties Trust III LP partnership’s acquisition is located between Arizona State University and Tempe Town Lake. The LEED-certified Marina Heights portfolio is planned as a future stop for the Tempe Streetcar, connecting the campus to the nearby airport, downtown and central Phoenix.

“We believe the ownership structure benefits all parties in the transaction, with steady cash flows generated from the long-term lease with State Farm and stable, long-term ownership and management for the tenants,” Transwestern Investment Group Senior Managing Director Collin Comer said in a statement.

A wholly owned subsidiary of TIG will manage the investments. Transwestern also manages the State Farm properties acquired in the Dallas and Atlanta sale-leasebacks. JDM Partners CEO Mel Shultz said his company and investors anticipate a continued relationship with State Farm across the U.S.

King & Spalding served as legal adviser in the Marina Heights trade and Eastdil Secured advised on the securing of debt capital.

For more information on the transaction, please see CoStar COMPs #4074574.

Source: JDM Partners, Transwestern Finalize 2 Million-SF State Farm Office Deal in Arizona