Northwest Corporate Centre
95% Occupied Multi-Tenant Office Building
Marketing description
Northwest Corporate Centre is a stabilized, income-producing Class A office property totaling approximately 88,306 rentable square feet, located along Oracle Road just north of Ina Road in Northwest Tucson, Arizona, immediately adjacent to Oro Valley.
The investment is underwritten primarily on strong in-place income at an above market capitalization rate, supported by long-term tenancy, a diversified rent roll, and a long history of sustained occupancy. The building is 95% occupied, providing immediate cash flow with a modest and well-located lease-up opportunity.
The property is anchored by the U.S. General Services Administration (GSA), which has occupied the building for nearly 25 years and recently renewed its largest lease in the building (38,408 sf) for an additional eight-year term, including five years firm. The GSA tenancy provides durable income supported by highly specialized tenant improvements and secure infrastructure that materially reduces tenant replacement risk.
The rent roll reflects a weighted average lease term (WALT) of approximately 5.4 years, calculated on a rentable square foot basis. Lease expirations are reasonably staggered, limiting near-term rollover exposure and supporting predictable cash flow.
Northwest Corporate Centre is offered at pricing that reflects current income and prevailing market conditions, rather than reliance on speculative growth assumptions. While replacement cost easily supports the valuation, the investment thesis is centered on the durability and predictability of the existing cash flow.
Investment highlights
- High Yield 8.5% Cap Rate
- Offer price: $17,500,000
- Price/rsf: $198.17
- 25-Year GSA Tenancy - Recently Renewed
- 95% Occupancy
- Cap rate: 8.56%
- Excellent Historical Occupancy
- 88,306 Rentable Square Feet
- Year built: 1984
- Remodeled: 2017
- Quoted rental rate: $24.50
- Full Service Leases
- Number of tenants: 15
- Construction: steel & stucco
- HVAC system: water cooled heat pump units
- Elevators: two passenger cabs
- Parking spaces: 360
- Secure spaces: 35
- Parcel number: 225-51-352
- 2025 property taxes: $169,368
- Interest offered: 100% fee simple
- Financials available upon request and execution of a nondisclosure agreement
- In-place cash flow focus: the offering is based on stabilized, in-place income at an above market cap rate, providing immediate yield without reliance on future leasing assumptions.
- Long-term credit anchor: GSA occupancy of nearly 25 years, coupled with a recent renewal, provides income stability supported by federal credit and highly specialized improvements.
- 95% occupancy with upside: current occupancy supports strong cash flow while offering a manageable lease-up opportunity without altering the building's risk profile.
- Well-positioned vacancy: remaining available space is well located within the building, including approximately 3,000 rsf adjacent to the post workspaces' annex offices, creating a natural expansion.
- Operational efficiency: the building has maintained energy star certification for 25 years, supporting longterm operating efficiency and cost control.
- Adapted office strategy: the integration of the post workspaces allows the building to capture evolving office demand while preserving its core institutional office profile. Although an independent tenant in the building, there has been a mutually beneficial relationship that supports the building occupancy, which will continue with new ownership.
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