ViaWest Group, in joint-venture with New York-based Taconic Capital Advisors announced today the purchase of the Canyon Corporate Plaza, a core-plus office campus for $27MM. This is ViaWest and Taconic’s fourth joint venture in Phoenix in the last two years.
The property is comprised of two office buildings, a 5-story and a 6-story each with a parking garage, and 6.4 acres of developable land. The purchased properties are located at 2510 and 2512 W. Dunlap Ave. in Northwest Phoenix. Constructed in 1989 and 2000, Canyon Corporate Plaza contains approximately 313,000 square feet of Class A office space.
Canyon Corporate Plaza is located one-half block from the full diamond interchange of 1-17 and Dunlap Ave., and in very close proximity to the Light Rail station expansion at 25th Ave. and Dunlap.
“Canyon Corporate Plaza is a fantastic lease-up opportunity,” says Steven Schwarz, Founding Partner of ViaWest Group. “These buildings are best-in-class in this submarket with great freeway visibility and access, 8:1000 parking potential, and an in process Light Rail extension that will provide convenient and fast transportation for the large labor pool in Northwest Phoenix. It is really an ideal location and property for all types of tenants”
ViaWest acquired the building at 66% occupancy, which will drop significantly with the likely vacating of a substantial portion of the building’s largest tenant, Cognizant, in the next year. The complex will receive an extensive renovation this year including new lobbies, elevator modernizations, a food truck plaza, a tenant lounge, and much more.
Dennis Desmond, Tivon Moffitt, and Peter Baumann with JLL’s Phoenix office, and Lynn LaChapelle of JLL’s San Diego office, represented both the buyer and the seller in the transaction. John Bonnell, Brett Abramson, Chris Latvaaho, and Chris Beall with JLL will handle leasing for the property.
“ViaWest Group is the ideal owner to renovate Canyon Corporate Plaza, restore occupancy to the property’s historical average of +90%, and to ensure it remains the preeminent office campus in the submarket,” says Dennis Desmond, JLL’s lead broker on the transaction.
Canyon Corporate Plaza will be one of the few properties in the metro area with over 100,000 s.f. of quality space available, and the only one with an exorbitant amount of parking greater than 8 spaces per 1000 sf of space.