By Alex Girda, Associate Editor
Less than a year after buying a neighboring property, Parkway Properties Inc. closed on the $86 million acquisition of Hayden Ferry Lakeside II in Tempe, Ariz. Completed in 2007, the 12-story, 300,000-square-foot building is part of Hayden Ferry Lakeside, a planned 5 million-square-foot office, retail and residential development on Tempe Towne Lake. Separate teams from CBRE Group Inc. represented the buyer and the seller.
The acquisition reflects Phoenix’s rebounding office market, contended Kevin Shannon, vice chairman & managing director for CBRE Group Inc. and a member of the team that represented the seller. Only seven other office markets in the U.S. absorbed more than 1.8 million square feet in 2011, and Class A assets like the Hayden Ferry Lakeside complex accounted for much of that activity, he pointed out.
In a $39.4 million deal completed last June, Parkway acquired Hayden Ferry Lakeside I, a nearby 203,000-square-foot, eight-story tower completed in 2002. That property recently signed a new tenant: Silicon Valley Bank, which took 50,000 square feet on two floors, the Phoenix Business Journal reported.