"Five years ago, it was pretty quiet in Downtown Phoenix," saysMatt Root, partner in the San Diego-based Shidler Group. "Now,we're seeing a more vibrant city. It's the best of the hot growthmarkets." He tells GlobeSt.com that the Shidler REIT bested the NewYork City-based JPMorgan and Crescent Real Estate Equities Co. ofFort Worth plus a couple private investors in the final face-offfor the 371,727-sf high rise at 101 N. First Ave. and itsseven-story, 943-space parking garage with 12,765 sf of retail at21 W. Van Buren St., less than a block's walk.

Root says joint venture sellers Angelo Gordon & Co. of NewYork City and Amerimar Enterprises Inc. of Philadelphia spentnearly six years and $20 million to reposition the high rise,buying into a value-add deal as the two lead tenants were headingout the door. In the past 18 months, the JV has leased 240,000 sfof the class A space. "We're going to continue to build on thatmomentum," Root says, adding that Trammell Crow Co.'s John Bonnelland team are taking over leasing and management. "The strategyright now is we're not going to be anxious to lease up space. Eachand every deal going forward is going to complement our existingtenants." Shidler is starting the play with three full floors tofill.

In addition to US Bank, other top space-takers are Valley MetroRail, ACS State & Local Solutions, Paragon Structural Designand the law firm of Campbell, Yost, Clare & Norell. Root saysthe building's roster, on average, has leases with seven years lefton terms and a 15% annual roll for the first few years.