Hines, the international real estate firm, announced today that it has sold Kierland One through a single purpose entity partnership between Hines and PCCP, LLC (PCCP) for an undisclosed price.
Kierland One is 90% leased after recently finishing a building refresh that included renovating the lobby and updating the exterior paint.
“Kierland One is a flagship property in the Scottsdale submarket with highly desirable tenants and a newly renovated building,” said Chris Anderson, senior managing director and Arizona leader for Hines.
The buyer is Velocis of Dallas, a private equity real estate investment firm which pursues medical office, retail and mixed-use properties. Kierland One is now their third investment in the Phoenix area. In 2016, Velocis purchased Park One, a three-building complex in the prestigious Camelback Corridor. In addition, Velocis owned Camelback Square, a three-story Class A office building in the heart of Old Town Scottsdale from 2015 to 2019.
“The quality of the asset and tenancy, as well as the walkable amenities in the Scottsdale Airpark submarket make Kierland One an attractive asset for our investment strategy,” said Jim Yoder, partner, Velocis. “Phoenix continues to be one of the strongest job creation markets in the country, and we are pleased to expand our presence in the market. We look forward to building on the great work that Hines and PCCP accomplished at One Kierland by putting our own Velocis stamp on the property.”
Kierland One is a Class A office building located in the Kierland submarket. Situated on 11 acres, the four-story building, 16430 N. Scottsdale Road, is across from the Promenade Shops, within the Kierland master-planned development. The surrounding area has attracted many banks and financial organizations and is located near the Scottsdale Quarter, Kierland Commons and the Westin Kierland Resort & Spa.
Hines added on-site food and beverage amenities for tenant convenience. The property is
leased to a variety of blue chip companies doing business in Arizona and across the country.
Hines acquired Kierland One in 2013 with joint venture equity partner PCCP, LLC. Alliance Bank of Arizona served as Hines’ lender at the time.
Hines will continue to serve as the property manager.
Barry Gabel, Chris Marchildon and Will Mast from CBRE represented Hines in the sale. Velocis was not represented by a broker.
Luke Walker, Brad Anderson and Mike Strittmatter with CBRE represented Hines for the leases.
Dallas-based Velocis has been active in real estate since 2010, purchasing 31 assets located in major markets within Arizona, Colorado, Texas, Georgia, Florida, North Carolina, Virginia, and the Washington D.C. Metro Area. Velocis is led by a team of five seasoned partners who are directly responsible for the acquisition, asset management and disposition of assets. Partners in Fund II are Fred Hamm, Mike Lewis, Jim Yoder, Paul Smith and David Seifert.
