Newmark Arranges Sale of One North Central, 429,120-SF Downtown Phoenix Office Tower, to AXS Opportunity Fund

Newmark has arranged the sale of One North Central, a 429,120-square-foot, 20-story Class A office tower at 1 North Central Avenue in Downtown Phoenix, the firm announced Oct. 2. The buyer is AXS Opportunity Fund, a Beverly Hills, California-based investment firm.

Newmark Executive Managing Directors Chris Marchildon, Barry Gabel and CJ Osbrink represented the seller. AXS Opportunity Fund has retained Newmark Senior Managing Director Brett Abramson, Managing Director Chris Latvaaho and Director Chris Beall as leasing advisors for the property.

One North Central Property Details

One North Central, built in 2001, is a high-rise office asset in Phoenix's central business district. The property includes a recently completed amenity center, structured and subterranean parking, and ground-floor retail. The amenity center, located on the sixth floor, represented an investment of about $3.5 million and is complemented by a café, security, property management and storefront medical services. Parking is provided at about 2.3 spaces per 1,000 square feet.

The building is 62% leased, equal to roughly 266,000 square feet occupied and about 163,000 square feet available. Rocket Mortgage is the anchor tenant, occupying approximately 43% of the property, and in-place rents are about 8% below market. The tower is adjacent to Valley Metro light rail and sits along Central Avenue near government offices, Arizona State University's Downtown Phoenix campus, and downtown retail, dining and entertainment. The property benefits from a GPLET property-tax arrangement that extends through 2051.

The seller was Parallel Capital Partners, which acquired the building for $93 million in 2015. The property was offered as a lender-owned asset.

AXS Opportunity Fund Plans Renovation

Joshua Afshani of AXS Opportunity Fund said the firm is adding the building to its nationwide portfolio. "We're thrilled to add One North Central to our nationwide portfolio and look forward to revitalizing the lobby and ground floor, including a new restaurant for the neighborhood," Afshani said. "We plan to invest significantly in the building to bring it back to a best-in-class condition and to better serve our existing tenants."

Brokers Cite Investor Interest in Office Assets

Marchildon said the sale reflects investor interest in well-located, institutional-quality office assets. "The sale of One North Central reflects growing investor interest in well-located, institutional-quality office assets that offer both scale and long-term value creation opportunities," he said. "This transaction demonstrates that there is active capital pursuing large-scale urban office assets when they offer institutional quality, a strategic location and a clear path to future value creation. We expect investment activity to continue as buyers evaluate an expanding universe of opportunities across the office sector."

Osbrink said high-rise office towers in Downtown Phoenix "represent a unique investment opportunity within the market."

Phoenix Office Market and Capital Markets Context

U.S. commercial real estate transaction volume climbed 31% year over year to $293 billion in the first half of 2026, with office transaction volume increasing 37% over the same period, according to Newmark's 2Q26 U.S. Capital Markets Conditions & Trends report. Newmark noted that distress levels remain below historical peaks while office investment activity continues to build.

Phoenix office conditions improved in the second quarter of 2026, though vacancy remained elevated and estimates varied by methodology. Lee & Associates reported 18.7% direct vacancy, Kidder Mathews reported 23.3% total vacancy, down 100 basis points year over year, and CPI reported a 15.7% vacancy rate. CPI put average office asking rents at $30.66 per square foot, with Class A rents at $36.12 per square foot, compared with $30.72 for Class B and $28.80 for Class C.

The sale marks another notable high-rise office transaction in Downtown Phoenix, a market that remains a focal point for investors seeking exposure to one of the Southwest's fastest-growing metropolitan areas.

Sources

Newmark press release, Oct. 2, 2026: https://www.nmrk.com/insights/press-releases/newmark-arranges-sale-of-one-north-central-a-nearly-430-000-square-foot-downtown-phoenix-office-tower