Parkway Widens Footprint with $66M Buy

TEMPE, AZ-Increasing its presence in this Phoenix suburb, Parkway Properties Inc. dropped $66 million to acquire the eight-story Tempe Gateway office building in an off-market transaction from Vulcan Inc. The buyer adds the 263,936-square-foot, class A office building to its growing local collection, which includes the 503,000-square-foot Hayden Ferry Lakeside buildings I and II.

“Parkway loves the Tempe market,” explains CBRE’s Jim Fijan, who represented the Orlando buyer in its deal with the Seattle seller. “Owning three major class A properties in that submarket was important to them.” Thanks to this acquisition, Parkway Properties owns more than 750,000 square feet in downtown Temple, meaning it has control of 52.8% of the class A office space in that submarket.