Discount Tire Buys Phoenix Office Campus

Discount Tire has purchased Desert Ridge Corporate Center I and II, a 275,208-square-foot office campus in Phoenix. The firm’s real estate division, Halle Properties LLC, acquired the Class A asset for $35 million, public records show.

The seller, Regent Properties, had acquired the property from FCA Partners for $58.6 million back in 2014. The campus is subject to a 78-year unsubordinated net ground lease held by the State of Arizona, according to CommercialEdge data.

Discount Tire has been a tenant at Desert Ridge Corporate Center since 2019, where it occupies an entire floor. The location is 4.7 miles from the retailer’s main headquarters. Additionally, it’s just a mile away from the 35-acre site it purchased in December 2022 for the construction of a new corporate campus.

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The 12-acre Desert Ridge comprises two four-story office buildings, measuring 137,983 square feet and 137,225 square feet, that were completed in 2005 and 2007, respectively. The property features electric vehicle charging stations, elevators, controlled access and a three-level parking structure.

Located at 20830 and 20860 N. Tatum Blvd., the office campus is near major routes including the Loop 101 and Squaw Peak Parkway. The buildings are directly opposite The Marketplace at Desert Ridge, a 1 million-square-foot retail hub.

A top 10 best-performing market for office investment

Phoenix remained one of the top 10 best-performing markets for office investment, according to recent CommercialEdge data. However, the Valley’s development activity slowed this year, the under-construction pipeline being one of the smallest among the major U.S. metros at the end of October.

The market’s office sales volume totaled $1 billion year-to-date through October, comprising 7.2 million square feet across 82 assets. The dollar value was up by 18.5 percent on a year-over-year basis.