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Nov. 7, 2012

Freeport-McMoRan Buys and Occupies 85,000SF American Airlines Building

By Camelia Bulea, Associate Editor

Phoenix-based Freeport-McMoRan Copper & Gold, a global mining company, has purchased the American Airlines building in Tucson for $5.2 million.

The 85,000-square-foot call center building, located at 3350 E. Valencia Road, was closed in August and has been vacant ever since, reports the Inside Tucson Business. The new owner intends to leave its current office at 6840 N. Oracle Road, which is currently listed as being available for lease.

Russ Hall and Steve Cohen with Picor Commercial Real Estate Services represented American Airlines in the transaction. The buyer was represented by Los Angeles-based Stewart Niles with Travers Realty, adds the Tucson publication.

Built in 2004, the building sits on 14.5 acres of land northeast of Tucson International Airport. The property was listed at $7.3 million.

Freeport-McMoRan Copper & Gold Inc. is the world’s largest publicly traded copper company. The company operates five mines in Arizona at Safford, Morenci, Bagdad, Sierrita and Miami, according to its website.

A market report regarding the Tucson office market in the third quarter of 2012 illustrates that demand for office space continued to decline as the overall market vacancy rate finished the third quarter at 14.6 percent, up from 14.4 percent in the previous quarter.

Cushman & Wakefield analysts report that three significant distressed buys occurred in the analyzed period in Tucson. The acquisitions include the Corporate Center Broadway and the County’s purchase of 160 N. Stone, with an investor buying Southwest Professional Plaza at auction.

Chart courtesy of Cushman & Wakefield Alliance Research

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