A view of The Grand 2 at Papago Park Center in Tempe, Arizona, US.
Doha: Qatar First Bank LLC (QFB) yesterday announced it has acquired The Grand 2 at Papago Park Center, a 358,800 square foot newly completed state-of-the-art Class A office building that is 100 percent leased to DoorDash under a 15-year triple net lease (NNN), located in Tempe, Arizona - United States, part of the metro Phoenix market.
Sheikh Faisal bin Thani Al Thani, QFB Chairman commented, “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 Sharia-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 Center, 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 center, providing a plethora of on-site restaurants for tenants.
DoorDash is a highly renowned American technology company founded in Palo Alto, California, ‘Silicon Valley’. In 2019, DoorDash’s revenue was $900m and has been gaining market share in 2020 despite COVID-19.
DoorDash took the first spot of the food delivery in the USA in terms of total industry sales reaching 48% as of June 2020, surpassing the likes of Uber Eats, Grubhub and Postmates. DoorDash’s revenue for the first nine months of the year rose to $1.92bn, compared with $587m in the same period in 2019, according to its filing prospectus.
It had 543 million total orders in the first nine months of 2020, compared with 181 million in the year-ago period.
Commenting on the acquisition, 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 percent 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 Center.
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.”
The Grand 2 at Papago Park Center 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.
