PHOENIX-CORE Institute, Arizona's largest orthopedic practice, has selected the 157,970-square-foot Union Hills Corporate Center for its expansion and new headquarters. The company signed a 15-year lease for 69,251 square feet, with plans to move into its new location location in October, 2013.

Union Hills Corporate Center, located at 18444 N. 25^th Ave., belongs to G2 Capital of Scottsdale, AZ. The 1980s office building was once home to Farmers Insurance Group. The insurance company arranged a sale-leaseback transaction in 2007 to Way Commercial Realty. According to G2 Capital principal James Greaves, his company acquired the building in 2011, shortly before Farmers departed.

"When we bought the building, there wasn't much activity," Greaves tells GlobeSt.com. "That's why we got it at the price we did." Furthermore, unlike 2011, during which absorption for office space was low, 2012 saw approximately 2.5 million square feet of absorption.

Greaves goes on to say that the property was close to vacant when G2 Capital acquired it. Now, with the CORE Institute lease, the occupancy is 70%. "We have another 30% of the building to fill, but we figure there's a lot of good momentum there now," Greaves comments.

The CORE Institute opened its first clinic in 2005 in Sun City West, growing to provide comprehensive orthopedic services to more than 36,000 new patients in 2012. The company currently employs more than 350 employees in Arizona, has a staff of nearly 200 at its North Phoenix locations and will have capacity to add employees as it continues to grow. The new facility will house its clinical areas, physical therapy center, training facility, lab space and executive offices.

Ashley Brooks, Jim Bayless and Jenny Aust of CBRE's Phoenix office represented G2 Capital in negotiating the 15-year lease, which includes tenant improvements.  The tenant was represented by Lynn Harle of Physicians Real Estate Solutions LLC in Phoenix. The exact financial terms of the transaction were not disclosed.