CBRE negotiated the $66M acquisition of Tempe Gateway, an 8-story, Class A multi-tenant office building at 222 S. Mill Ave.
Jim Fijan of CBRE’s Phoenix office represented the buyer, Parkway Properties Inc. of Orlando, Fla., in its unsolicited offer to purchase the downtown Tempe office property. The seller was Gateway Tempe LLC, a company formed by Seattle-based Vulcan Inc.
The 263,936 SF office building was developed by Opus West Corp. in 2009, before it lost the property to foreclosure. Vulcan acquired the asset in shell condition later that year and has since brought its occupancy to 74%.
“Parkway has experienced exceptional leasing success at its two other Tempe properties, Hayden Ferry Lakeside I and II,” Fijan said. “With no new product immediately available and strong demand for Class A space in downtown Tempe, Tempe Gateway provides Parkway with additional leasing opportunities in the area and a significant share of the market.”
Parkway Properties now owns 787,842 SF in downtown Tempe, giving it control of 52.8% of all the Class A office product in that submarket. Parkway owns more than 1.18 MSF Valley wide.