Bldg C 19810 N 7th Ave 45,189 SF Office Building Phoenix, AZ 85027 $8,999,000 ($199.14/SF) 8.43% Cap Rate

19810 N 7th Ave presents an exceptional boutique investment opportunity within the vibrant Deer Valley submarket. This 45,189 square-foot, single-story office building is fully leased to two esteemed tenants: Prosano Health Solutions, a subsidiary of Blue Cross Blue Shield, and L3 Communications, which has occupied the building for approximately 21 years. Both tenants secured their leases in a post-COVID environment, indicative of a right-sized occupancy.
Constructed in 2001 and situated on a 3.87-acre lot, the property offers modern office space with excellent freeway access, visibility, and ample parking. Located in a market characterized by robust economic activity and significant recent transactions, 19810 N 7th Ave is strategically positioned to deliver consistent returns and long-term value appreciation for investors.
OUTPERFORMANCE OF SINGLE-STORY AND BOUTIQUE PRODUCT
- Vacancy Statistics to Back it Up -
* 11.1% | Single-story assets located west of the 51 freeway exhibit even stronger performance, with a notably lower vacancy rate of 11.1%. This geographic advantage highlights the desirability of properties in this area, driven by factors such as proximity to key business hubs and transportation networks

* 7.15% | Boutique single-story assets, specifically those ranging between 30,000 to 50,000 square feet in Metro Phoenix, achieve an impressive vacancy rate of 7.15%. This significantly outperforms similar-sized multi-story buildings, which have an 11.6% vacancy rate. The lower vacancy rate underscores the appeal of boutique single-story properties, which offer a more personalized and efficient space for tenants.

SUCCESS OF DEER VALLEY
* Older properties in Deer Valley outperform newer buildings, with assets developed from 2000-2011 exhibiting just a 12.9% vacancy rate. This trend indicates that tenants in the submarket prioritize value over newer construction. Buildings like North Loop, developed during the 2000s and designed for smaller tenants, continue to outperform the overall market and newer developments.

* The Deer Valley area is experiencing robust economic activity, driven by both industrial and office developments, creating a favorable environment for commercial real estate investment. The region’s growing population and rising incomes support the long-term attractiveness of office investments, ensuring ongoing demand for well-located properties like 19810 N 7th Ave.

TSMC SEMICONDUCTOR ANNOUNCEMENT FUELING ROBUST NORTH PHOENIX GROWTH
* Located just a few miles north of the subject property, Taiwan Semiconductor Manufacturing Company (NYSE: TSM), the world’s largest contract chipmaker, recently announced the purchase of 1,128 acres of land ($89 million) of a planned 3,500 acre technology campus located in North Phoenix at a State land auction on which it intends to build a $65 billon factory. The campus is projected to create more than 2,000 jobs directly, 10,000 jobs indirectly and will continue to drive tremendous growth along the Loop 303 Corridor and North Phoenix.