Arizona’s 2nd-Tallest Building Commands $93M

The JV that acquired the 31-story Phoenix office asset is set to invest $15 million in upgrades.
101 North
101 North

Black Salmon, the investment platform of TSG Group, has partenered with ScanlanKemperBard Cos. to acquire 101 North, also known as the U.S. Bank Center, a 375,862-square-foot office building in Phoenix. According to Yardi Matrix data, the seller is a joint venture between Varde Partners and ScanlanKemperBard and the second-tallest asset in the state traded for $92.8 million. The sale was also subject to a $73.8 million acquisition loan held by Prime Finance Partners.

Located at 101 N. First Ave., the 407-foot-tall landmark is near the new Valley Metro light rail route in the city’s central business district, two blocks west of Phoenix Convention Center. The immediate area holds many high-street retail, restaurants and hotels. The property is close to Interstate 10, while Phoenix Sky Harbor International Airport is roughly 4 miles east.

Plans for immediate improvements 

Delivered in 1976, the 31-story building was completely renovated in 2013, per Yardi Matrix data. The high-rise features 13,242-square-foot column-free floorplates and a parking ratio of 3 spaces per 1,000 square feet. Amenities include a conference center, lounge and on-site ATMs, as well as a seven-story parking structure located at 21 W. Van Buren St., in a designated Opportunity Zone. The property is currently 83 percent leased to a diverse tenant roster that includes U.S. Bank, WeWork and Jacobs Engineering Group.

The new ownership intends to immediately invest $9 million in building improvements. Planned upgrades target the fitness center, common areas, management and leasing offices, as well as the ground floor lobby and exterior façade. Another $6 million will go towards leasing efforts.

In 2018, Black Salmon acquired another bank building, a 444,644-square-foot, 28-story asset in Indianapolis. The Class A property traded for $70 million.