Situated on 11 acres at 16430 N. Scottsdale Rd., Kierland I wasbrought to market by a pension fund managed by UBS Realty InvestorsLLC in San Francisco. While the property is fully leased, only 60%of it is occupied because Prudential is relocating its operationsto a larger, adjacent building.

"Prudential's still on the lease for another three years. Theysublet a portion of the building out," Robert Burnand, senior vicepresident in Phoenix with CB Richard Ellis, tells GlobeSt.com.Burnand, who represented the seller, says the upside will occurwhen the lease expires and the building can be offered at a highermarket rate. The Fort Worth-based DR Horton Inc. has subleased partof the structure for its regional office.

Kierland I was completed in 1999 when market rates were $23 persf to $24 per sf. Today market rate is $30 per sf to $33 per sf."The lease to Prudential was triple net, as they wanted to keep thecosts down. They did their own remodeling and put a lot of moneyinto it," Burnand says.