Joint Venture Buys Phoenix Office Campus for $27 Million

Article originally posted on CoStar on February 7, 2020

Canyon Corporate Plaza in Phoenix is 66% leased. (CoStar)

A joint venture between ViaWest Group and New York-based Taconic Capital Advisors has purchased Canyon Corporate Plaza in Phoenix from Washington, D.C.-based Northridge Capital for $27 million, or about $86 per square foot.

The acquisition marks ViaWest and Taconic’s fourth joint venture in Phoenix in the past two years.

The two-building office campus at 2510 and 2512 W. Dunlap Ave. totals approximately 313,000 square feet. Built in 1989 and 2000, the five- and six-story buildings each include a parking garage and 6.4 acres of developable land.

The property was 66% leased at the time of sale. According to a press release, the occupancy rate will drop significantly with the likely vacating of a substantial portion of the building’s largest tenant, Cognizant, in the next year.

Canyon Corporate Plaza will receive an extensive renovation this year including new lobbies, elevator modernizations, a food truck plaza and a tenant lounge.

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 seller in the transaction. John Bonnell, Brett Abramson, Chris Latvaaho and Chris Beall with JLL will handle leasing for the property.

“Canyon Corporate Plaza is a fantastic lease-up opportunity,” Steven Schwarz, founding partner of ViaWest Group, said in a statement. “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.”

Headquartered in Phoenix, ViaWest Group has been involved in more than $1 billion of acquisitions since its launch in 2003, according to its website.