Hines Picks Up Vacant 175 KSF Office Building in Metro Phoenix
By Barbra Murray, Contributing Editor
Hines has just increased its ownership footprint in metropolitan Phoenix with the acquisition of Kierland One, a 175,400-square-foot office building in Scottsdale. The international real estate firm joined forces with equity partner PCCP L.L.C. to purchase the Class A property from Cornerstone Real Estate Advisers, which had owned the asset since 2011.
Commercial real estate services firm CBRE Group Inc. represented the seller in the transaction. The fact that nary a name graces the tenant roster at Kierland One was hardly a deterrent for Hines; it’s the 14-year-old property’s location within the Kierland master-planned development in the North Scottsdale Airpark submarket that grabbed the company’s attention. Location and timing–Hines saw a good opportunity and jumped on it. “Competition is substantial with many qualified investors trying to gain a position in quality locations that are seeing significant interest from tenants,” Chris Anderson, managing director with Hines, told Commercial Property Executive.
Hines will invest in a few upgrades at Kierland One, but the company is wasting precious little time moving forward with leasing, having tapped Cassidy Turley to spearhead the effort.
“We are already aggressively marketing the building to potential tenants,” Anderson added. “We believe the market continues to improve month over month and are in position to take advantage of increasing tenant demand.”