Ascentris, a Denver-based real estate private equity firm, on behalf of one of its public retirement system clients, announced today the purchase of Kierland Corporate Center II, a three-story, 82,000 square-foot Class A multi-tenant office property. The property located at 7033 E. Greenway Parkway in Scottsdale, Ariz., was sold by PCPI Kierland II LLC and Parallel Capital Partners for $25 million.
Kierland Corporate Center II, constructed in 2009, is currently 93% leased to major tenants including STMicroelectronics, Eide Bailly, and Sherman & Howard. The property features modern architecture, efficient floor plates, a two-story lobby, 290 parking stalls, and benefits from immediate access to some of Arizona’s most sought-after shops and restaurants. Within walking distance to both Kierland Commons and Scottsdale Quarter, the property provides its tenants and visitors quick access to dozens of restaurants and retailers such as Apple, Restoration Hardware, Nike, and Tesla. Surrounded by some of Phoenix’s most prestigious residential neighborhoods, the property attracts tenants across industries, including healthcare, technology, life sciences, and financial services.
Ascentris’ business plan calls for completing key tenant-facing capital improvement improvements, building out speculative leasing suites, completing modest improvements to the parking garage, and owning the property long-term.
“We are currently targeting high-quality office buildings in certain suburban submarkets across the United States; Kierland Corporate Center II is a great example of what we find attractive in this strategy,” said Ascentris Vice President Jeff Higgins, who led this acquisition for Ascentris. “We have substantial holdings in Kierland at the moment and we are very excited to expand our presence there through a property of this caliber and in such a strong location,” added Higgins.
Eric Wichterman and Mike Coover of Cushman & Wakefield Phoenix brokered both sides of the deal. Colton Trauter and Bill Blake from Lee & Associates will lease the property for Ascentris, and Arcadia will provide property management services.