Apex Capital Investments purchased Grand2 \u2014 a 352,000-square-foot, nine-story office building in Tempe, Ariz. \u2014 from Lincoln Property Company for $187.5 million, or $534 per square foot. The building is fully leased to DoorDash, the San Francisco-based food delivery behemoth. The deal, which was completed last month, was the largest office deal in Phoenix and the fifth-largest in the country in 2020.<\/p>\n
\u201cGrand2 is a stand-out building across the board,\u201d said Lincoln Property Company Senior Executive Vice President David Krumwiede. \u201cIts\u00a0amenities and location exceed the highest market standards, and it is stabilized by a full-building, long-term credit tenant that is exploding with growth, especially during the COVID-19 pandemic.\u201d<\/p>\n
Office investment and leasing activity declined\u00a0last year\u00a0due to the pandemic, which has kept many people working at home rather than in the office. However, Grand2\u2019s prime location and long-term\u00a0tenant\u00a0made this property extremely attractive to investors in an otherwise lackluster market.<\/p>\n
The property was developed by Lincoln Property Company as a speculative project in 2019 and, upon completion, it was quickly leased to DoorDash. Shortly thereafter, in early 2020, LPC started marketing the property for sale before the pandemic disrupted the economy. This timing enabled potential buyers to tour the building prior to lockdowns and social distancing protocols.<\/p>\n
Grand2 is the second of\u00a012\u00a0total buildings\u00a0in the\u00a0Grand at\u00a0Papago Park Center\u00a0mixed-use\u00a0development in Tempe, which is located on the north side of Tempe Town Lake\u00a0along the Loop 202 freeway.\u00a0The development totals 350\u00a0acres and\u00a01.8\u00a0million square feet\u00a0of\u00a0office\u00a0space with another 1.4 million square feet spread across\u00a0multifamily, retail and hotel\u00a0space. The building is LEED Silver certified.<\/p>\n