A 20-story office tower at 2600 N. Central Ave. in Midtown Phoenix just sold for $15 million, nearly half of its 2019 price of $29.45M. The property was renovated in 2022 and includes more than 317,000 sq. ft. on 2.74 acres at Central & Thomas.
Key Points
- Buyer: Cotterkey Investments (Phoenix-based)
- Seller: Townline Ventures (Vancouver-based)
- Current occupancy: 63%
- Largest tenant: U.S. Bureau of Indian Affairs (approx. four floors)
- Unique feature: Dedicated data-center space with redundant power & two backup generators
- New owner plans: Lease to more traditional office tenants, not expand data-center use
- Cotterkey also owns the Bank of America building nearby, purchased for $11.4M in 2023, now stabilized and filled.
Why It Matters for Investors
- Massive discounts on commercial assets continue in Midtown/Phoenix.
- Office distress can present cash-flow or redevelopment opportunities.
- As major employers relocate or right-size footprints, the Midtown corridor remains an evolving submarket.
- For SFR investors, continued shifts in commercial usage and central-city employer patterns can influence rental demand and neighborhood desirability.