LXP Industrial Trust has acquired a major office campus in Phoenix from Epic Apollo for $103 million. Epic Apollo originally purchased the three-building complex at Broadway Road and 32nd Street in 2015 for $183 million. The property had long served as the headquarters campus for the University of Phoenix, which now occupies only a few floors in one of the buildings.
According to reporting from the Phoenix Business Journal, the campus consists of a 10-story office tower and two six-story office towers totaling 628,192 square feet. The buildings were delivered in 2006 and are situated on 37.11 acres at Broadway Road and 32nd Street. In addition to the office space, the property includes two large parking garages and a 9,194-square-foot restaurant space on site.
The transaction represents a significant change in basis for the seller, reflecting a roughly $80 million difference between the 2015 acquisition price and LXP’s current purchase price. The office complex, once fully occupied as the University of Phoenix’s headquarters, now houses the online university on only a portion of the campus, with the balance of the space not described in the source material. Terms beyond headline pricing, such as any financing structure, cap rate, or business plan for the campus, were not disclosed in the available report.
LXP Industrial Trust is primarily known as an industrial-focused real estate owner. Its broader portfolio comprises more than 100 industrial properties totaling roughly 54 million square feet. Within the same metro, LXP controls a 202,000-square-foot industrial facility in Chandler leased to Amazon at 3405 South McQueen Road. The company also owns an 801,000-square-foot Class A distribution facility leased to Chewy in Goodyear at 255 143rd Avenue, along with a 540,349-square-foot distribution center in Goodyear at 16811 West Commerce Drive.
The Phoenix office campus acquisition adds a large, modern office asset to LXP’s holdings in a market where it already has a meaningful industrial footprint. The combination of the campus’s 2006 construction vintage, structured parking, and on-site restaurant space positions the asset as a sizable office investment at a revised pricing level compared with its prior trade. However, the source material does not specify current occupancy beyond the University of Phoenix’s presence, or any planned repositioning strategy for the property.
