TEMPE, AZ-An affiliate of KBS Realty Advisors of Newport Beach, CA, has acquired the 439,070-square-foot Fountainhead Office Plaza for $137 million in the first major office deal over $300 per square foot since the first quarter of 2008 in the Phoenix market, according to CB Richard Ellis. Kevin Shannon, CBRE vice chairman in the company's South Bay office in Torrance, CA, tells GlobeSt.com that the pricing reflects the quality of the asset as well as capital's appetite for yield in today's investment environment.

"This is a core real estate deal, a brand new building with a strong credit tenant and a reliable income stream. It's what capital is looking for," said Shannon, who led a CBRE team that represented the seller, San Antonio, TX-based USAA Real Estate Co.

The property is a newly developed office campus at 1601 and 1625 Fountainhead Parkway in Tempe comprising two high-rise class A office buildings that were developed by USAA Real Estate along with Metro Commerical Properties.