Shorenstein Snaps Up 446 KSF Phoenix Asset

Fountainhead Plaza

Shorenstein Properties has expanded its office portfolio with the acquisition of Fountainhead Plaza, a two-building property totaling 446,000 square feet in Tempe, Ariz. KBS Realty Advisors sold the buildings after 10 years of ownership, CommercialEdge data shows.

Constructed in 2011, Fountainhead Plaza comprises a six-story and a 10-story building featuring floorplates averaging around 28,000 square feet. The LEED Gold certified asset also includes a standalone parking facility and amenities such as a cafe, fitness center and an outdoor gathering area. The company plans to improve existing amenities and add upgrades throughout the buildings.

Shorenstein owns more than 32 million square feet of office space across the country, according to Commercial Edge. However, the acquisition marks the company’s first office investment in Greater Phoenix over the last two decades. The company invests in markets with large talent pools, which attract high quality employers and employees and strong and consistent leasing demand.

Thanks to its newer inventory and proximity to Arizona State University, Tempe has been one of the best-performing office submarkets of Greater Phoenix. Owing to the region’s business-friendly environment and lower cost of living, the Valley continues to attract residents and businesses alike.

According to the 2020 U.S. Census, Phoenix grew faster than any other major city over the last decade, with its population increasing by more than 160,000 residents, up 11.2 percent from 2010 to 2020. Phoenix is now the country’s fifth-largest city, trailing just New York, Los Angeles, Chicago and Houston.