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6/05/25
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Phoenix-based Helix Properties purchased Black Canyon Center, a three-story, 96.8k sf multi-tenant office building in Phoenix, for $4.98 mil ($51/sf). The property, located at 10835 North 25th Ave, was 22% leased at time of sale, presenting a significant value-add opportunity for the new owner.
Black Canyon Center is a well-appointed office asset with clean architectural lines and extensive window lines. The property boasts a ±5.7/1,000 parking ratio and a generous ±2.5/1,000 covered parking ratio. The location provides immediate access to the I-17, from which the entire valley’s freeway system can be accessed, granting accessibility to a large and dense labor pool. Additionally, the Metro Light Rail’s Northwest Expansion Phase II project further increases the area’s connectivity to the rest of the valley.
Eric Wichterman, Chris Toci and Mike Coover with Cushman & Wakefield in Phoenix represented the seller in the transaction. Greg McMillan, also with C&W, provided market leasing advisory.
“Phoenix’s Black Canyon Corridor has long been the cost-effective, high-value alternative to its expensive neighboring submarkets,” commented Wichterman. “This building's low occupancy offers the buyer an ideal value-add opportunity with a clear path to potential significant upside by having the lowest basis in the trade area and by implementing a spec suite program to stabilize. Due to a severe shortage of quality move-in ready suites in this submarket, tenants have literally had to seek options outside of the submarket. In fact, once the leasing agent let it be known that an incoming ownership would be investing heavily in tenant improvements, leasing activity surged to a feverish pace.”
“Return to Work trends have resulted in a desire for best-in-class, move-in ready office space. However, according to our tracking, no competitive buildings in the submarket contained high-quality spec suites of 6k sf or smaller despite ample tenant demand. Meanwhile, larger tenant (20k sf) demand is returning to the metro Phoenix market, with a ±20% year-over-year increase in transaction activity in 2024. Black Canyon Center is a great asset to capitalize on this momentum,” added Coover.
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