Qatar First Bank (QFB) has announced that it acquired The Grand 2 at Papago Park Centre, a 358,800 square foot newly-completed state-of-the-art Class A office building that is 100% leased to DoorDash under a 15-year triple net lease (NNN), located in Tempe, Arizona, US, part of the metro Phoenix market.
QFB chairman Sheikh Faisal bin Thani al-Thani said, “This transaction cements QFB’s new fee-based income business model, implemented to enhance QFB’s investment management strategy, and further strengthens its Shariah-compliant US real estate portfolio. The new strategy continues to invest in handpicked Shariah-compliant real estate assets that provide highly stable income to investors as well as upside potential.”
Developed and managed by Lincoln Property Company, The Grand 2 is comprised of a nine-story, best in class, LEED Silver certified building built in 2020 and a seven-level parking structure providing 1,687 parking spots. The Grand 2 has the capacity to house approximately 2,000 DoorDash employees, making it the company’s largest facility.
Located within Papago Park Centre, a 350-acre, mixed use development spanning 2.6 MSF, the area is a hotbed for multifamily development with 1,316 units and the exquisite high-end Papago Hills retail centre, providing a plethora of on-site restaurants for tenants.
DoorDash is a highly renowned American technology company founded in Palo Alto, California, “Silicon Valley”. Doordash went public on the second week of December this year and priced its IPO at $102 per share, well above initial expectations. The stock opened for its first day of trading on December 9 at $182 and closed at 189.51, 85.8% above its IPO price reflecting a market value of $60bn.
The Grand 2 at Papago Park Centre provides QFB’s investors with an exceptionally high-quality, risk-adjusted investment opportunity with a long-term lease, strong in-place cash flows and contractual rental escalations, located within an actively evolving market.
Metro Phoenix is a thriving centre of commercial and residential activity, with a young and educated workforce. Phoenix Sky Harbor International Airport is just minutes away and is available via the Metro Light Rail system. In addition, Papago Park Centre is located within two miles from Arizona State University, home of 82,000 enrolled students and ranked “No 1 most innovative school in the country.”
QFB CEO Abdulrahman Totonji said, “QFB is pleased to have received exceptional demand for subscribing to its Shariah-compliant DoorDash Real Estate structured investment product which is expected to pay a 7% annual return to its investors.
As always, QFB continues to hold true to its commitment to present the best in class, highly vetted, cherry-picked investments with risk-adjusted returns to its clientele and is delighted to have completed the acquisition of The Grand 2 at Papago Park Centre.
“This comes a few months after our acquisition of yet another successful structured investment product, Varsity Brands, which we were able to syndicate completely in a matter of few days. A monumental achievement, one that sets the tone for a strong 2020 finish and a great start to 2021.”
Business / Business
Qatar First Bank announces acquisition of The Grand 2 at Papago Park Centre in US
QFB chairman Sheikh Faisal bin Thani al-Thani.
