Brokers for CB Richard Ellis in Phoenix are representing theseller. They confirmed that the 1 N. Central Ave. high rise isunder contract, but declined to provide any additional details. Theprospective buyer's identity couldn't be determined by press time.Sumitomo, which owns multifamily properties in the region, acquiredits only office building in the metro from Minneapolis-based RyanCos.

Charles Miscio, senior vice president for ColliersInternational's Phoenix office, says the New York City-based sellermost likely placed Phelps Dodge Tower on the sales block because ofbrisk trading in recent months of CBD office buildings. "They'dbought the asset for around $201 per sf and have been seeing recenttrades of more than $300 per sf for similar assets," says Miscio,who was with CBRE's Phoenix office and involved in last summer'stalks with Sumitomo started to consider the sale. "I think they'dtracked the Collier Center sale and realized they had two large,long-term leases in place in their assets with limited rollover anda strong institutional market out there for a trophy core asset anddecided to test the waters to see what would happen," he says."This is sheer profiteering and I can't say I blame them."

Miscio tells GlobeSt.com that Sumitomo also had strongprecedence for putting its asset on the market. Collier Center at201 E. Washington St. sold in July 2007 for $177 million, workingout to roughly $345 per sf. More recently, Hines has bought the965,508-sf One and Two Renaissance Square at 2 N. and 40 N. CentralAve. for $270.9 million or about $280 per sf.