Microsoft co-founder Paul Allen’s Vulcan Inc. Acquires Tempe Gateway

By Adam Lyons in : News // Jun 18 2010

TEMPE, AZ-Vulcan Real Estate has made its first investment outside of the Seattle market, paying $35 million for Tempe Gateway, a class A office building.

The company, which is the real estate investment arm of Microsoft co-founder Paul Allen’s Vulcan Inc., acquired the eight-story, 260,000-square-foot from the lender. The acquisition was brokered by the CBRE’s investment sales team of Jim Fijan, Jerry Roberts and Corey Hawley.

The acquisition marks the company’s efforts to diversify its assets, according to Ada Healey, vice president of real estate at Vulcan Inc. She tells GlobeSt. that Vulcan is looking for acquisition opportunities in Phoenix and Southern California.

“Our initial thinking is that we’d like to stay on the West Coast so we can get there in two to three hours,” Healey says. The company believes that markets like Phoenix and those in Southern California will rebound from the recession more quickly than others due to their proximity to major employment centers and transits hubs, as well as job and population growth

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“The Phoenix-area real estate market is poised for a recovery, and now is a good time to buy quality buildings in desirable locations, which have been discounted relative to replacement costs,” Healey says. “We would like to invest more in Phoenix.”

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