Tag Archives: Mesa Corporate Center

The Vue at Park West

Buchanan Street Partners invests $43.25M in Phoenix properties

Buchanan Street Partners announced two acquisitions in the greater Phoenix area, including Vue Park West, a 260-unit luxury apartment complex in Peoria, Ariz., and the 106,077 SF Mesa Corporate Center office complex in Mesa, Ariz. The acquisitions reflect Buchanan Street’s continued investment strategy in the Phoenix area, a market where the Newport Beach, Calif.-based investor has been an active buyer of value-add commercial and multifamily investments.

Buchanan Street, in partnership with Denver-based Baron Properties, paid $30 million for the Vue Park West (formerly known as Alta Park West), or approximately $115,300 per unit. Buchanan was attracted to the project’s current cash flow and the prospect for rent growth in the West Valley market. Completed by Wood Partners in 2008, the community has enjoyed an occupancy rate of more than 90% since 2010, outperforming submarket occupancy over the same period.

Buchanan Street also recognized the value of Vue Park West’s location within walking distance of numerous retail amenities at the adjacent Park West lifestyle center, and the property’s convenient access to the Agua Fria (101) Freeway at W. Northern Avenue. Baron will make modest renovations that will allow the partnership to maximize the property’s potential.

“Vue Park West is an excellent example of the caliber of core plus and value-add investments that we are making in select Western markets,” said Bob Dougherty, partner at Buchanan Street Partners. Buchanan Street has targeted California, Arizona, Nevada and Texas for investments in the $10M to $100M range.

Buchanan Street has also acquired Mesa Corporate Center, a two-story Class A office building, for $13.2 million from seller Parkway Properties. The project, located at 1001 W. Southern Avenue in Mesa, was 89% leased at the time of the sale, with a credit tenant roster that included Allstate Corporation and Carrington College (DeVry).

Buchanan Street acquired the property at a 40% discount to estimated replacement cost and  was attracted to the project’s current cash flow and opportunity to participate in improving fundamentals as leases expire.

“Mesa Corporate Center offers a first-class office environment in a location that complements Buchanan’s existing Phoenix-area portfolio, allowing the firm to broaden its offerings to existing and potential tenants and achieve further economies of scale in the Phoenix market,” said Brian Payne, vice president at Buchanan Street Partners.

Mesa CC

Mesa Corporate Center Sells for $13.2M

Cushman & Wakefield of Arizona, Inc. has negotiated the $13.2M sale of Mesa Corporate Center, located at 1001 W. Southern Ave.

The 106,077-square-foot office building was constructed in 2000 and was 89 percent occupied at the time of the sale. Tenants include Allstate Insurance Company, DeVry University and Allied Barton Security.

Parkway Properties of Orlando, Fla. sold the property to Buchanan Street Partners of Newport Beach, Calif.

“Mesa Corporate Center has proven to be one of the leading office developments in the Southeast Valley since its completion,” said Chris Toci. “It is representative of a growing demand for freeway-located office space with above-standard parking ratios and immediate access to a deep amenity base.

“Office and vacancy rates along the Southeast Valley freeway system are rapidly tightening to the single digits, which is indicative of near-term rent growth and increased build-to-suit activity,” Toci said.

Toci, Chad Littell, Jerry Noble and Ryan Bartos of Cushman & Wakefield represented the seller in the transaction.


Banner Health Adds A Solar Installation At Its Mesa Corporate Center

Banner Health has announced the completion of a $2.5 million solar installation at its Mesa Corporate Center, located at 525 West Brown Road in Mesa. The system was designed, had financing secured and was constructed by Natural Power and Energy.

At 598.8 kilowatts, the project is one of the largest in the Phoenix metropolitan area and is estimated to provide a savings of up to $40,000 over existing energy costs. The project consists of rooftop parking structures covering approximately 46,627 square feet and provides shade and protection to 260 vehicles. The electricity produced equates to about 30 percent of what is used on the Banner Health campus in winter months.

The Banner Health Corporate Center-Mesa is itself a reuse project. In partnership with the local community, the 254,000-square-foot, nine-story building that was Banner Mesa Medical Center was repurposed by Banner Health in 2009. It now houses nearly 1,500 employees, several non-clinical departments and the largest medical/surgical simulation center in the country.

“Banner Health takes community responsibility seriously and sustainability efforts that redirect resources toward critical patient care initiatives are a top priority – even within the conservation efforts we use to manage our own facilities,” said Kip Edwards, vice president of development and construction for Banner Health. “Banner chose Natural Power and Energy given their strong reputation in the solar energy marketplace. Their ability to develop cost effective solutions was central to our decision.”

“We commend Banner Health for its commitment to the environment,” said Lori Singleton, SRP Director of Program Operations. “We are proud to be a part of a project that utilizes clean, emission-free energy from the sun.”

Under SRP’s Sustainable Portfolio goals, SRP must secure sustainable and renewable resources to meet 20 percent of its retail load by the year 2020. Currently SRP’s sustainable portfolio, which consists of energy-conservation programs and renewable-energy sources, including solar, wind, landfill gas, geothermal and low-head hydro, is more than 9 percent.

“Harnessing natural sunlight to generate electricity is a vital way everyone can contribute to a sustainable future,” said Rob Dallal, CEO of Natural Power and Energy. “Banner’s commitment to sustainability in all the markets they serve is a powerful example of corporate stewardship in action.”

In 2011, Banner Health was named one of the Top Five Large Health Systems in the country based on clinical performance, according to Thomson Reuters, a leading provider of information and solutions to improve the cost and quality of health care. Banner Health was recognized for having superior survival rates, better long-term outcomes, better adherence to accepted care protocols and patient-safety standards, shorter hospital stays, higher patient-satisfaction scores and fewer patient complications.