SCOTTSDALE, AZ-Hines of Houston has teamed with PCCP LLC to acquire Kierland One, a class A, 175-441-square-foot office building in the North Scottsdale Airpark submarket of Phoenix from Cornerstone Real Estate Advisors. The vacant building, situated on 11 acres within the Kierland master-planned development, offers plenty of upside for the new owners in that it is in a submarket recovering nicely from the financial downturn.
The building itself, however, has had a somewhat troubled time in the aftermath of the Great Recession. Completed in 1999, the building at 16430 N. Scottsdale Rd. was sold to KBS Realty Advisors LLC on behalf of Pacific Live Insurance Co. for $53.3 million. The departure of main tenant Prudential Life Insurance Co. created issues during the financial downturn, however. According to records with the Maricopa County Assessment District, the building was sold at a trustee's sale in 2011 for approximately $18.2 million to Kierland AZ LLC.
However, as GlobeSt.com reported in April 2013, the submarket in which Kierland One is located is starting to see some positive momentum, with increased occupancy and interested investors. It's that upward trend, along with the building's location, that attracted Hines and its equity partner.
"We were attracted to Kierland One because of its premium location, the quality of the project, and the continuing Phoenix market recovery," says Hines managing director Chris Anderson. "This is a great addition to our portfolio of Class A office properties in Phoenix. The building's flexible floorplates present a unique opportunity for large tenants."
Barry Gabel, executive vice president with CBRE, represented the seller in the transaction. Jeff Hartland, executive vice president with Cassidy Turley, will be overseeing leasing. No sales price was indicated and the Maricopa County Assessment District values the building at $24.4 million.
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