Tempe Hayden Ferry Lakeside building sold

New York City-based Sumitomo Corp. of America has bought one of two office buildings at the Hayden Ferry Lakeside development in Tempe for $92.5 million.

The buyer, a subsidiary of international conglomerate Sumitomo Corp., acquired the 12-story tower from Phoenix-based SunCor Development Co., the developer behind the master-planned project along Tempe Town Lake.

Those involved with the deal say the price was several million dollars less than what the tower would have sold for last year because of turmoil in the debt-financing markets.

Sumitomo, which sold Phelps Dodge Tower in downtown Phoenix in March for $127 million, paid cash for the building, according to Chris Toci, executive director in Phoenix with Cushman & Wakefield of Arizona Inc.

"If it weren't the quality of real estate that it is, (the sale) wouldn't have happened," said Toci, who helped negotiate the sale.

The building, which has about 300,000 square feet and is home to investment firm Smith Barney, was 83 percent leased when the sale closed Wednesday. It was completed in February, according to Randy Levin, vice president of commercial/urban development and design for SunCor.

Fidelity National Title Insurance Co. recently moved to the building, and MetLife has also agreed to lease space there. Other tenants include KPMG and architecture firm DAVIS.

Although commercial real-estate transactions have slowed since last summer, Levin said there is pent-up demand for space at Hayden Ferry Lakeside because of its central location and proximity to downtown Tempe's amenities.

Hayden Ferry Lakeside currently has another eight-story office building, which serves as SunCor's headquarters, and two condo buildings that SunCor developed. Late this year, the company also plans to start building a third office building.