Tempe – Two funds managed by Parkway Properties Inc. in Orlando, Fla. paid a combined $16.2 million to purchase a site for a 250,000-square-foot office building and a 270,000-square-foot parking structure within the Hayden Ferry Lakeside office project at Tempe Town Lake. Including previous purchases within the multi-building office complex, funds managed by Parkway Properties will have invested about $300 million in taking control of roughly 750,000 sq. ft. of office space in three buildings and a parking garage that serves the project.
In the most recent sale, PKY Fund II Phoenix III LLC (the Parkway entity) paid $3.5 million in cash to purchase a parcel at 40 W. Rio Salado Parkway that is targeted for development as a 250,0000-square-foot office building. The seller was RP HFL LLC, a joint venture formed by Rockpoint Group LLC in Dallas, Tex. and Sunbelt Holdings LLC in Scottsdale (John Graham, pres.). Sources say Sunbelt Holdings will be part of the venture with Parkway Properties that will develop Hayden Ferry Lakeside III.
In a separate cash transaction totaling $12.7 million, PKY Fund II Phoenix V LLC acquired a parking garage at 68 E. Rio Salado Parkway. In July 2011, BREW reported Parkway Properties paying $40 million to acquire the 203,100-square-foot Hayden Ferry Lakeside I office project. That eight-story building is at 80 E. Rio Salado Parkway. In February 2012, BREW reported Parkway Properties paying $86 million ($286.67 per foot) to purchase the 300,000-square-foot Hayden Ferry Lakeside II office project. That 12-story building is at 60 E. Rio Salado Parkway.
All of the land under the Hayden Ferry Lakeside buildings is owned by Tempe and is on ground lease from the city. Parkway Properties, a publicly-traded real estate investment trust (REIT), owns five Valley office projects totaling 1.173 million sq. ft. The company is looking for additional office investment opportunities. The contact at Parkway Properties is Matt Mooney . . . call him at (480) 281-2635.
