Lincoln Property Co. sold its newly developed Grand2 property. The deal was the largest office transaction in Phoenix last year, and the fifth largest office deal in the US. Grand2 is a 9-story, 358,000-square-foot office building fully leased to San Francisco-based DoorDash. Apex Capital Investments Corp. purchased the property, but the sales price was not disclosed.

"The COVID pandemic has many investors making a flight to safety and quality. The industrial and multi-family sectors reflect that interest, so do high-quality, single-tenant office assets that have long-term, credit tenant leases," David Krumwiede, senior EVP at Lincoln Property Co., tells GlobeSt.com. "Grand2 fits squarely in this office asset category, with its Class AA amenities and its long-term lease to DoorDash."

Office has notoriously struggled in 2020 due to the pandemic and widespread remote work policies, which have kept most corporate offices closed. As a result, both office leasing activity and office investment nearly halted across the country, and particularly in major metros, like New York and San Francisco. However, Lincoln saw strong investment demand despite these market changes. Krumwiede attributes the demand to the property's prime location and amenities. "These are the factors that are resonating with office tenants and employees," he says. "We were not surprised that this combination attracted both U.S. and international interest, but the level of off-shore attention was more than we expected, and the pricing was right in line with our pre-pandemic expectations."