Office Activity Sets Bar High, Will Housing Follow?

By Alex Girda, Associate Editor Parkway Properties has just expanded its portfolio after buying a nautical-design building on the south bank of Tempe Town Lake, The Phoenix Business Journal reports. Hayden Ferry Lakeside I was purchased for $39.4 million. According to [...]

Parkway Properties has just expanded its portfolio after buying a nautical-design building on the south bank of Tempe Town Lake, The Phoenix Business Journal reports. Hayden Ferry Lakeside I was purchased for $39.4 million. According to that same PBJ article, the building was built in 2002 and currently has 15 tenants which lease out 52 percent of the available space. The company predicted further expenditures including closing costs, building improvements and tenant improvements during the following two years to stand at about $4.3 million.

Another substantial deal closed in the Phoenix area recently was the sale of Desert Ridge Medical Campus. The campus, part of the master-planned Desert Ridge community, was sold to Healthcare Trust of America, a real estate investment trust, Phoenix Business Journal reported. The trust spent $32.8 million on the property. Mark Engstrom, the executive VP of acquisitions, told PBJ this will make HTA the largest medical office building owner in Arizona. The campus includes two three-story office buildings, a two-level parking structure, and two surgery centers. The complex is 88 percent leased.

Concord Eastridge has purchased a vacant lot in downtown Phoenix and is set to alleviate the housing shortage faced by area employees and students. The company recently closed a $3.1 million deal for the 2.89-acre lot at the corner of Third St. and Roosevelt St. The project is not technically student housing, but one of its main leasing focuses will be Arizona State University students according to Amy Heisle, spokeswoman for Concord Eastridge, in a statement to The Arizona Republic. A projected 350 units will constitute the residential component of the project while 5,000 square feet will be destined for retail or commercial businesses.