Parallel Capital Acquires Full Interest in AZ Office Tower
- May 30, 2018
Parallel Capital Partners has acquired full interest in Two Arizona Center, one of two Class A office properties within metro Phoenix’s entertainment destination, Arizona Center.
“This was a compelling deal for us,” said Matt Root, CEO & managing partner for Parallel Capital Partners, in a prepared statement. “The building is situated in the heart of the iconic Arizona Center, a mixed-use development now nearing completion on a comprehensive $25 million renovation, and is fully leased until 2045 to one company—APS—giving it tremendous long-term value.”
The 20-story building was purchased from Angelo, Gordon and Co. The two companies acquired the Arizona Center campus in 2015 for $126 million, in a deal which included entitlements for an additional 3.9 million square feet of improvements. The office asset comprises 512,852 square feet on a one-acre parcel at 400 N. Fifth St. Over the last few years, the tenant—Arizona Public Service Co.—has invested more than $46 million to upgrade the building, which was constructed in 1989.
The 16-acre Arizona Center began renovations in 2017. The development will add a 200-key AC Hotel by Marriott and last month, Parallel Capital sold a parcel that will house the 30-story Palm Court Tower, a $100 million luxury residential tower.
Image courtesy of Parallel Capital Partners