Macquarie Buys Second Greater Phoenix Office Building in Four Months

Article originally posted on CoStar on December 22, 2021

Hines and New York Life Real Estate Investors built The Offices at Chandler Viridian in 2019. (CoStar)

Hines sold its 2-year-old office development in Phoenix’s Chandler suburb for $102 million to Macquarie Asset Management, the Australia-based investment firm’s second office purchase in the greater Phoenix area this year.

Sydney-based Macquarie, which has U.S. offices in Boston, said in a statement it acquired the 251,000-square-foot Chandler Viridian offices at 3133 W. Frye Road, developed in 2019 by Houston-based Hines in a joint venture with New York Life Real Estate Investors.

The six-story building is 92% leased to a variety of tenants, including planning, engineering and architecture consulting firm Stantec and Albuquerque, New Mexico-based solar technology firm Array Technologies, according to CoStar data.

Hines said in a separate statement that it would stay on as property manager at Chandler Viridian.

In August, Macquarie paid nearly $57 million for Casa, a three-story office building at 7878 N. 16th St. in North Phoenix. The firm said it also owns and manages offices in Scottsdale and Tempe as part of a strategy of targeting Phoenix and other high-growth markets that have a diverse economy.

“Leasing momentum has been outstanding since the Offices at Chandler Viridian opened, and the Chandler submarket continues to attract a broad spectrum of tenants, which is one of the key reasons that this asset appealed to us,” Macquarie Asset Management Managing Director Christopher Quiett said in the statement.

The property sold for $102 million, or more than $400 per square foot, according to a person with knowledge of the transaction. That’s well above the average $250 per square foot paid for three- to five-star office properties in Chandler over the past 12 months, according to CoStar data.

The office building is in the 26-acre Chandler Viridian mixed-use development that includes luxury apartments, retail, several restaurants and a 136-room Cambria Hotel. The development features a dog park, jogging trail and pedestrian walkway to the high-end Chandler Fashion Center shopping mall.