Hines Sells Kierland One Office Building in Phoenix
- Oct 31, 2019
Hines has sold a Class A office building located in Phoenix’ Kierland submarket through a single purpose partnership with PCCP. The deal marks the third investment in the metro for the buyer, Dallas-based Velocis. Financial terms were not disclosed, but real estate database Vizzda reported a $52.5 million purchase price.
The four-story asset known as Kierland One is located on 11 acres at 16430 N Scottsdale Road. The property was 90 percent leased at the time of the sale, following a recent renovation, which included a lobby revamp and new exterior paint. Moreover, the office complex was equipped with on-site food and beverage amenities for tenant convenience. Notable tenants include Thompson Wealth Management, Carlisle, Primary Residential Mortgage and Bradley Wealth Management.
According to Yardi Matrix data, Hines had acquired the 175,441-square-foot property in 2013 for more than $29 million. Following the change of ownership, Hines will continue to serve as property manager. The international real estate firm was represented in the transaction by Barry Gabel, Chris Marchildon and Will Mast from CBRE. Velocis represented itself. Luke Walker, Brad Anderson and Mike Strittmatter with CBRE represented Hines in the leases.
In addition to Kierland One, Velocis owns Park One—a three-building complex in the Camelback Corridor that the company acquired in 2016. Until January 2019, the Dallas private equity investment firm owned Camelbak Square, a Class A office property located in Old Town Scottsdale, which it sold to City Office REIT for $53 million.