The Wait's Over: Parkway Pays $58M for CBD Trophy

Parkway Properties has just acquired the deed from F.P. Arizona, a single-asset entity of GIC Real Estate Inc. of San Francisco. Though no one's talking about the selling price, GlobeSt.com has independently confirmed the $58-million ticket for the 11-year-old tower at 1850 N. Central Ave.

F.P. Arizona acquired the 91%-occupied. 24-story office building in 1996. It was part of a 12-million-sf, class A office portfolio managed by GIC.

David Alcorn, Ann and Bruce Gillespie and Brian Polachek, an Insignia/ESG team in Phoenix, brokered both sides of the deal, most likely a year-to-date record for the metro office market. "Parkway is a new player in the market," Alcorn tells GlobeSt.com. And, he adds, Parkway is enthused to be building its presence in the Arizona market. Parkway also owns the Park on Camelback, a 103,329-sf, five-building office complex at 4455 Camelback Rd. That 85%-leased property is nestled inside the bounds of the prestigious Camelback Corridor. Parkway has assigned an in-house management team to both properties.

The Viad Tower is an exemplary buy, known for its elaborate lobbies, bronze statues, conference facilities and fiber optic capabilities. "Viad Tower is one of the true trophy properties of the Southwest," says Alcorn.

The tower is the headquarters for Viad Corp., created about four years ago in a divestiture of Dial Corp. Dial relocated its headquarters to a building near the Scottsdale Airpark in Scottsdale, and Viad, which provides food to airlines and services and goods to trade shows, stayed put in about 48,000 sf. Other tenants include America Group, a title company; PriceWaterhouseCoopers; Cavanaugh Law Firm; Morrison & Hecker, a law firm; and Aon Insurance.