Project’s Office Leasing Momentum Led Market During Pandemic
Hines, the international real estate firm, has reached an agreement to sell its award-winning Chandler Viridian development to Macquarie Asset Management representing a U.S. real estate mandate.
Hines will remain the property manager of the building with a focus on continuing its operation as a best-in-class mixed-use development.
Since the onset of the Pandemic in early 2020, The Offices at Chandler Viridian generated more than 140,000 square feet of new leases and existing tenant expansions –the most of any building across metro Phoenix during the same period. As a result, the Chandler office submarket was the metro Phoenix leader in positive net absorption in 2020 with more than 232,000 square feet, ahead of Tempe, Scottsdale and other core submarkets.
“We are very proud of this project and its positive impact on the market,” said Chris Anderson, Senior Managing Director of Hines. “Chandler Viridian has truly created a model for development in the greater Phoenix market, and its success is the reason why we had an opportunity to work with Macquarie Asset Management on this significant transaction.”
Hines developed the property in a joint venture partnership with New York Life Real Estate Investors, led by Chris Hunt and Mike Hamilton.
“Chandler Viridian is an exceptional project and is having a tremendously positive impact on the East Valley commercial real estate market,” said Brandon Dillingham, Managing Director at Hines. “We are grateful to the entire team involved in this transaction, including our joint venture partner New York Life Real Estate Investors, for their hard work and commitment to making it a win-win for everyone involved.”
Chandler Viridian is a premier mixed-use development integrating residential, Class A office, hospitality and retail developments located at the intersection of Loop 101 and Loop 202. The project boasts exceptional access to local freeways and significant nearby restaurants and amenities, including Chandler Fashion Center mall. The project was named NAIOP’s 2019 Mixed Use Project of the Year and Spec Office Building of the Year.
“Hines developed a very high-quality property as evidenced by the strong and consistent leasing momentum since the Offices at Chandler Viridian opened. The submarket continues to attract a broad spectrum of tenants and we’re delighted to now hold the asset,” said Christopher Quiett, Managing Director-Real Estate, Macquarie Asset Management.
Barry Gabel and Chris Marchildon of CBRE brokered the sale transaction. Jerry Roberts and Pat Boyle represented Hines on the leasing of the property and will continue to be the leasing team moving forward. Chris Burson at Alliance Bank was the banking partner throughout the development of the project.
“CBRE is honored to have represented Hines and New York Life in the sale of this newly constructed, best-in-class, office building,” said Barry Gabel, Executive Vice President with CBRE. “The quality of construction, superior tenant roster, positive leasing dynamics, and mixed-use nature of this Premier A office property are all reasons why investors from across the globe had sincere interest in this trophy office. We are certain that Macquarie Asset Management and their client will undoubtedly have long term success as new owners of the asset.”