San Diego-based Parallel Capital Partners has acquired full interest in Two Arizona Center – one of two Class A commercial office towers within the Arizona Center, downtown Phoenix’s original metropolitan entertainment destination. The 20-story property was acquired from Angelo, Gordon and Co. in an off-market transaction for an undisclosed price.
The more than 450,000 square foot tower is 100 percent leased to utility giant, Arizona Public Service Company (APS), Arizona’s largest and longest serving electric company.
“This was a compelling deal for us,” said Matt Root, CEO and managing partner for Parallel Capital Partners. “The building is situated in the heart of the iconic Arizona Center, a mixed use development now nearing completion on a comprehensive $25 million renovation, and is fully leased until 2045 to one company – APS – giving it tremendous long-term value.”
Both Angelo Gordon and Parallel represented themselves in the transaction.
Situated on a one-acre parcel at 400 N. 5th St. within the 16-acre Arizona Center project – located at 3rd and Van Buren Streets – the tower was originally constructed in 1989 and is located in the heart of Phoenix’s growing central business district. APS has invested over $46 million in recent years to modernize and upgrade the building.
In a joint venture Parallel Capital Partners and Angelo, Gordon & Co. paid $126 million in late 2015 for the Arizona Center complex with entitlements for an additional 3.9 million square feet of improvements.
A comprehensive renovation of the Arizona Center began in 2017, and plans were recently revealed for the addition of a 200-room AC Hotel by Marriott. Last month, Parallel announced it had sold a parcel within the Arizona Center, which will soon house Palm Court Tower, a $100 million, 30-story luxury residential tower.