Arizona’s 2nd-Tallest Building Commands $93M
- Aug 28, 2019
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.