Parallel Capital Partners Acquires Full Interest in Arizona High Rise
PHOENIX, Arizona — San Diego-based Parallel Capital Partners has acquired full interest in Two Arizona Center – one of two Class A commercial office towers within the Arizona Center, downtown Phoenix’s original metropolitan entertainment destination. The 20-story property was acquired from Angelo, Gordon and Co. in an off-market transaction for an undisclosed price.
The more than 450,000-square-foot tower is 100 percent leased to utility giant, Arizona Public Service Company (APS), Arizona’s largest and longest serving electric company.
“This was a compelling deal for us,” said Matt Root, CEO and managing partner for Parallel Capital Partners. “The building is situated in the heart of the iconic Arizona Center, a mixed use development now nearing completion on a comprehensive $25 million renovation, and is fully leased until 2045 to one company – APS – giving it tremendous long-term value.”
Both Angelo Gordon and Parallel represented themselves in the transaction.
Situated on a one-acre parcel at 400 N. 5th St. within the 16-acre Arizona Center project – located at 3rd and Van Buren Streets – the tower was originally constructed in 1989 and is located in the heart of Phoenix’s growing central business district. APS has invested over $46 million in recent years to modernize and upgrade the building.
In a joint venture Parallel Capital Partners and Angelo, Gordon & Co. paid $126 million in late 2015 for the Arizona Center complex with entitlements for an additional 3.9 million square feet of improvements.
A comprehensive renovation of the Arizona Center began in 2017, and plans were recently revealed for the addition of a 200-room AC Hotel by Marriott. Last month, Parallel announced it had sold a parcel within the Arizona Center, which will soon house Palm Court Tower, a $100 million, 30-story luxury residential tower.