“The buyer liked the credit tenancy and the property was 80% leased, leaving some room. It was perfect timing for the buyer—they were in the middle of a 1031 exchange.”

Phoenix has become a prized office market with more than 1 million square feet of net absorption this year, surpassing all of 2013, and is attracting significant interest from investors across the country. Adler Investments was able to structure the transaction as a 1031 exchange in order to achieve their tax planning objectives.

“We're seeing more and more capital from the West Coast, and also from Canada. That capital is moving inland to Phoenix. In fact more capital from around the US continues to move to Phoenix,” says Clark. “Not just downtown Phoenix, but collar submarkets as absorption starts to move outward to places like Deer Valley.”

The Corridors is an 80-acre corporate office park that is home to a Drury Inn & Suites Hotel and regional headquarters for blue-chip firms such as the Chubb Group of Insurance Companies and the Arizona State Credit Union. The project serves both national and regional headquarters, as well as back-office functions.

Located on the southeast corner of I-17 and Pinnacle Peak Road in the rapidly expanding Deer Valley area, the site is just two freeway exits north of the Route 101 Agua Fria/Pima Freeway, the outer loop road that surrounds Phoenix.