Following a “north of $6 million” sale of Glen Lakes Golf Course, another sale is being finalized by Glendale City Manager Kevin Phelps.
“With the Bank of America building, we are working on a sales agreement,” Phelps said.
“We hired a broker to go out and solicit bids, and now we’re working towards getting an agreement (to present) to council.”
As in a tentative sale of the golf course, a sale of the Bank of America building will have to be approved by Glendale City Council.
The Bank of America building sale is not quite as large as the golf course. “It’ll be north of $4 million,” Phelps said of the bank building sale.
“In both cases, we felt very strongly about the way we marketed it toward going in the hands of private sector” rather than continuing public ownership, Phelps added.
“We don’t see this as anything but a win-win.”
Unlike the golf course, which the city was spending hundreds of thousands per year to maintain, the bank building had been generating revenue for the city.
“We paid cash for it, so we had net-lease dollars coming in,” Phelps said.
Even so, he said that, in addition to the sales price, shifting the building ownership to the private sector will continue to pay off, in the long run: “It’ll go on the tax rolls.”
Commercial properties website loopnet.com shows an active listing for the Bank of America Plaza at 5800 W Glenn Drive in downtown Glendale.
The sales price on the 58,134 square foot office building: $4,383,000.
“Highlights” listed on loopnet.com:
Priced significantly below replacement cost.
• Over 75% of the building is occupied by investment-grade tenants.
• Abundant covered parking.
• Opportunity to significantly increase cash flow.
• Prominent building located adjacent to Glendale’s Municipal Government Center
• Located in the core of Historic Downtown Glendale
The broker is CBRE, which calls itself “a worldwide leader in real estate services.”
According to the Bank of America Plaza sales description at loopnet.com, “The largest tenant in the building is the State of Arizona which occupies 62.9% of the property.
“Bank of America Plaza is currently owned by the city of Glendale, which seeks to sell its interest in the building thereby allowing the city to focus more on its core responsibilities of providing services to its residents and local businesses. Also owned by the city is an adjacent five-level parking garage. The city will give Bank of America Plaza rights to 309 designated parking spaces in the garage with additional public parking available if needed.
“The city of Glendale is undergoing a major transformation with numerous sizable developments which are creating a surge of interest in the city. Over the last decade, the city has been one of the fastest-growing cities in the United States. Historic Downtown Glendale, where Bank of America Plaza is located, has been named by USA Today and Sunset Magazine as one of the country’s 10 best places for shopping. The pedestrian-friendly area spans 10-square blocks and is the focal point for numerous attractions and civic activities.”
Phelps said the Bank of America Plaza sale is another key piece of the city’s economic turnaround.
Less than a decade ago, “We were in a tedious financial condition,” Phelps said. “We felt what we had to do was right the ship financially. The best way to do that is with new revenues, economic development.
“That has been our single biggest success story: economic development. We are kicking tail all over this region in projects.”
Though the anticipated sales of the golf course and bank building would bring Glendale more than $10 million, Phelps hinted this is just the tip of a financial iceberg.
“What you will see announced and built over the next few years will blow people away,” he said with a smile.
“We have a lot of stuff going on."