Parallel Ups Game In Phoenix With $20M Deal
"Follow the money" might be wise in certain situations, but for San Diego-based Parallel Capital Partners, "follow the growth" is guiding its investments. "We believe the area is poised for continued growth," says Parallel Capital Partners CEO Matt Root about the company's latest acquisition in Phoenix, Kierland Corporate Center.
"The center is in an ideal Scottsdale location in the 730-acre Kierland master planned community, with outstanding tenant demand," Matt says. The 78k SF office complex at 7033 East Greenway dates from 2009 and is 87% leased, with tenants that include STMicroelectronics; Eide Bailly; Stifel, Nicolaus & Co; and Sherman & Howard.
Parallel paid $20M for the property. Cushman & Wakefield repped the seller, Bataa/Kierland II LLC, while John Bonnell and Brett Abramson of JLL repped Parallel.
The deal is the most recent foray by Parallel into the greater Phoenix market. Late last year, the company acquired the landmark Arizona Center—a 16-acre mixed-use campus in downtown Phoenix—for $126M along with Angelo, Gordon & Co. Now the owners are planning a major renovation of the property to take advantage of growth in the Phoenix CBD.
Other holdings in the market include One North Central and City Square in Phoenix’s CBD, and with the latest deal, Parallel has over 2.3M SF of office and retail space in the market. Phoenix, Matt says, is "one of the fastest-growing cities in the nation, and home to six Fortune 500 companies.”