Investor Acquires Modernized Tower in Evolving Office Submarket
Phoenix, Arizona – Townline Ventures has acquired its first Phoenix office asset with the purchase of the 20-story midtown office tower located at 2600 N. Central Ave. In addition to their current land holdings in Arizona, the Vancouver-based company purchased 2600 Tower as part of its continuing efforts to acquire income-producing assets in the Phoenix market with strong potential for re-positioning.
“The Midtown submarket has been making extraordinary advances during this real estate cycle,” says Mindy Korth, executive vice president of Colliers International in Arizona. “An impressive variety of urban multifamily communities, artisan restaurants and creative retail developments have been added to the Midtown neighborhood that create a ‘live, work, play’ lifestyle for residents and workers. The submarket has been discovered by new innovative and tech-oriented business that are attracted to the area’s resurgence.”
Korth negotiated the sale on behalf of Adler Realty Investments, Inc. of Woodland Hills, CA, assisted by Luke Denmon of Colliers International along with John Bonnell and Brett Abramson of Jones Lang LaSalle, who had leased the property for Adler during their entire ownership period.
2600 Tower was developed in 1982, with all of its major building systems having been modernized, replaced or refurbished recently at an expense exceeding $5.8 million. The 68% leased Class A high-rise contains 323,607-square-feet and houses five different federal agencies. The property also contains nine datacenters totaling ±25,000-square-feet.
“Townline is working with local architecture firm RSP Architects to reimagine the office building as the Midtown office market continues its resurgence,” says Geoff Matthews, Townline Acquisitions Manager. “Townline has a long-term approach for investing and developing in a diversity of asset classes and communities in the Phoenix and LA markets and this asset fits well into that strategy. Following this acquisition Townline will continue to look for multi-family development and other commercial investment opportunities in the Phoenix and LA areas.”
2600 Tower is situated in the heart of Midtown, adjacent to other offices, luxury residential condominiums, historic neighborhoods, numerous retail and restaurant amenities, as well as arts and cultural attractions.