Fairmount Place, a multi-tenant office building at 4001 N. 3rd St. in Phoenix, has been sold in an investment transaction represented by Cushman & Wakefield. First & Center LLC disposed of the property, with Albuquerque SNF acquiring the asset for $11.5 million. The sale involved a recently repositioned office building that has seen substantial interior upgrades in the form of speculative office suites.
Cushman & Wakefield's Eric Wichterman and Chris Toci acted on behalf of the seller in the transaction. Wichterman, a Vice Chair with the firm, described Fairmount Place as highly distinctive due to the seller's decision to convert nearly the entire building into spec suites following its 2019 acquisition. According to Wichterman, almost all of the property's 31 office suites were recently built out on a speculative basis rather than being delivered one at a time.
The building totals approximately 87,030 square feet and is configured as a four-story, multi-tenant garden office asset. The decision to construct and deliver spec suites in coordinated batches was a central element of the seller's strategy. Wichterman noted that this approach allowed prospective tenants to choose from a range of ready-to-occupy spaces with various sizes and layouts, rather than waiting for customized buildouts.
Fairmount Place is currently reported to be 92% leased. The property has maintained occupancy in a narrow band between 90% and 100% over the past several years, indicating sustained tenant demand for the building's spec-suite offering. The leasing profile reflects the impact of providing move-in-ready suites on both absorption pace and ongoing occupancy levels.
As part of his commentary on the sale, Wichterman said the building's operating history since the spec-suite initiative was implemented underscores the benefits of delivering a portfolio of pre-built suites. He attributed stronger leasing performance to being able to present tenants with an immediate, curated selection of office options, which he said drives a higher hit rate on tours, faster lease-up, and more durable occupancy. The Fairmount Place trade highlights an office asset with a high level of occupancy, a spec-suite driven leasing strategy, and an institutional brokerage team involved in the disposition.
