PHOENIX—In recovery mode with many believing the downtown core will capture the economic benefits of the new cycle, San Diego-based Parallel Capital Partners, in a joint venture with Angelo, Gordon and Co., has acquired a downtown property for $126 million. This is not just any property, but Arizona Center–a class-A mixed-use campus. Spanning 1 million square feet-plus, the Van Buren Street property–acquired from Equity Commonwealth–is comprised of two 20-story office towers, low-rise office and open-air retail space, a 3.5-acre urban garden, a 24-screen AMC movie theatre and 3.341 acres of vacant land all set on a 16-acre superblock site.

Matt Root, CEO of Parallel Capital Partners, tells GlobeSt.com: "This was an attractive deal for us on many levels. Arizona Center is a downtown anchor, and its renovation will be key to the ongoing renaissance of downtown Phoenix–which has consistently performed and remains one of the region's pre-eminent class-A markets. An 18-hour phenomena is emerging in Phoenix, a hub for cultural and arts institutions, higher education, major league sports–with diverse residential options–as well as being one of the fastest growing cities in the nation and home to six Fortune 500 companies. We are thrilled to expand our presence here."

Parallel is assembling a repositioning team for the renovation with construction expected to begin in the spring of 2016. According to Root, Parallel will invest more than $25 million to reinvent and upgrade the landmark property. "The transaction allows for the development of an additional 3.9 million square feet of improvements and upgrades," he said. "We are undertaking a comprehensive renovation of the campus, to include revamping and expanding the retail complex, adding parking facilities, modernizing elevators and upgrading the landscaping and the courtyard area."