Built in 2000 on 8.27 acres, the class A office building at 1001 W. Southern Ave. is fully leased. Its tenant roster includes Allstate Insurance Co., Morgan Stanley Dean Witter, Apollo Group Inc., which is the parent company for the University of Phoenix, and a regional sales office for SLM Financial Corp.

According to William Flatt, Parkway's CFO, its local team will oversee leasing and management for Mesa Corporate Center as it does for the 287,179-sf Squaw Peak Corporate Center and 481,346-sf Viad Corporate Center, both in Phoenix. "We already have a presence in Phoenix and want to continue to grow that presence," Flatt says.

Flatt tells GlobeSt.com that the attraction to acquire Mesa Corporate Center is its age, quality and location in Mesa. "As the city continues to expand around the property, it felt like this asset, given its quality construction, would give a good current return," he explains. "Long term, because it's newly constructed and will attract increasing development, we felt it would be a good hold."

Another positive aspect, Flatt points out, is the building's lease roll or rather lack thereof. "There is no significant roll anticipated in the short term," he says. "It's a large floor plate building, which appeals, and it's easy to get into and out of so I think the tenants are very happy there."

Finally, the building size fits in well with Parkway's portfolio. "Because it's a smaller building, we can manage it with the human resources we already have in place in the Phoenix area," Flatt says.

A CB Richard Ellis Inc. team in Phoenix negotiated the property's sale. Parkway was self-represented in the transaction.