San DIego real estate
340 E. Palm Lane in Phoenix. Photo credit: Screen shot, Google Street View

A San Diego investor has purchased a large Arizona office building and parking lot for $18.2 million, a brokerage announced.

The buyer, Pete Katz of Katz Real Estate, was represented by Nicholas Totah, an executive for the Totah Group in Marcus & Millichap’s San Diego Downtown office. The seller was an investment group based in Phoenix.

Brookstone Office Complex, located at 340 and 350 E. Palm Lane in Phoenix, consists of two office/medical buildings on over 5.7 acres of land. The property has more than 125,000 square feet of space and was 69% leased at the time of sale to a variety of local, regional, and national office and medical tenants.

In addition, Katz acquired a parking lot that covers nearly an acre.

According to Marcus & Millichap, the investment presented a value-add opportunity for the buyer, both short and long term, including its location in a more favorable tax state, and a city with a strong growth potential.

Marcus & Millichap is a commercial real estate brokerage specializing in investment sales, financing, research and advisory services.