Parallel Capital Acquires Full Interest in AZ Office Tower

Two Arizona Center, a 20-story building located on one of the 16 acres comprising the mixed-use Arizona Center, offers 512,852 square feet and is fully leased to Arizona Public Service Co.
Two Arizona Center, Phoenix

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 property, 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