SAN DIEGO—Phoenix has been an under-the-radar city that is rapidly on the rise and offers compelling opportunities for both commercial and homeowner investment, Parallel Capital Partners' CEO Matt Root tells GlobeSt.com. The San Diego-based, private, fully integrated real estate investment and operating company, which is focused on acquiring value-added and core-plus opportunities for its own account in primary and secondary markets west of the Mississippi, including Hawaii, recently signed four new leases at One North Central—a 20-story, class-A office tower in Downtown Phoenix.

One of the leases signed is for nearly 150,000 square feet that will house the Arizona offices of Quicken Loans. The Detroit- based lending giant will occupy six floors at One North Central and embark on a major renovation of the space.

According to Root, with these latest transactions, One North Central is now more than 93% leased. Joining Quicken in the building will be Live Nation, the Beverly Hills-based events and entertainment company, and Coleman & Finch, a new gastropub concept on the corner of Washington and 1^st St. Additionally, Urban Eye Care has leased 1,528 square feet for 121 months to introduce Downtown Phoenix's first full-service optical center.

Parallel acquired One North Central in 2015 and currently owns 2.3 million square feet of Phoenix office and retail space including the Arizona Center—now in the midst of a $25-million renovation—as well as City Square in the midtown area and Kierland Corporate Center II located in Scottsdale.

We spoke with Root about its geographical focus and the appeal of the Phoenix market.

GlobeSt.com: What geographic areas is the company focusing on and why?

Root: Parallel focuses on long-term growth markets that have high barriers to entry with a high quality of life and a history of long-term job growth, such as Phoenix, Denver, Dallas, Honolulu, San Diego, Orange County and Los Angeles.

GlobeSt.com: What type of property do you look for, and what are the typical value-add, renovations and upgrades needed?

Root: We focus on value-add and core-plus properties in non-gateway markets or secondary rings of gateway markets where we can identify capital voids, market and operating inefficiencies, anticipated cyclical recoveries and properties that are under-managed and under-capitalized that can be redeveloped or repositioned to appeal to a broader marketplace.

GlobeSt.com: What is your strategy for realizing potential upside?

Root: Parallel seeks real estate assets that have significant cash flow and residual value enhancement potential through creative and aggressive asset management, including targeted capital improvements, tenant lease-up opportunities and operating efficiencies.

GlobeSt.com: Can you touch on the appeal of Phoenix market?

Root: Phoenix has been an under-the-radar city that is rapidly on the rise and offers compelling opportunities for both commercial and homeowner investment. Phoenix is a late-recovery market that exhibits compelling population and job growth and has one of the largest populations and economies in the Southwestern region. We have noticed a conspicuous uptick in overall growth and market fundamentals over the last 12 to 18 months.

GlobeSt.com: Anything else our readers might like to know about Parallel and its investment strategy?

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