What Next After Corridors for Adler?
The sale of the massive 1.4M SF Corridors office park is a tale of two owners—the buyer and seller—that offers a glimpse into the strategy of two big Phoneix players: Adler Realty Investments and Alter Group.
The seller, Alter Group, sold four of the buildings in more than 160k SF in the Corridors at the intersection of I-17 and Loop 101 in Deer Valley—for nearly $16M. The deal now allows Alter to redeploy its capital to the 187-acre Riverwalk project. “We saw an opportunity given the increasing absorption of the submarket,” says EnTrust Realty Advisors' Jim Clark, an affiliate of Alter. Jim sees more capital coming in from outside the Phoenix market, particularly from California and Canada. Specific to the Riverwalk project, Jim tells us Alter is marketing land for office build-to-suit projects.
The buyer, Adler Realty Investments, picked up the complex after a months-long search for the right value-add play in Phoenix, says Adler's Chris Engel. It's especially attractive because it's an office market “where all the fish are not feeding,” even as it sees fundamentals improve. Even as Adler closed the purchase, the State of Arizona Child Protective Services leased the entirety of the 1925 W Pinnacle Peak Rd building.
