Seattle Billionaire Buys Tempe Gateway Building

TEMPE - He co-founded Microsoft, and he's one of the richest people in the world with a personal wealth of $13 billion. He owns the Seattle Seahawks and the Portland Trailblazers, and now Paul Allen owns a piece of Tempe.

Allen has purchased the 8-story Tempe Gateway building, located at Mill Ave and 3rd St, for $35 million.

Tempe Mayor Hugh Hallman is excited that one of the most successful entrepreneurs in the world is taking over Tempe's symbol of the real estate meltdown. "Their group's decision to invest $35 million signals to the market here's the place to invest," he says.

The Tempe Gateway building, built in the height of the housing boom, was left for dead after the developers filed for bankruptcy. Businesses never moved in.

That's where Allen's Vulcan Real Estate Company came in. "We started looking at markets in the Phoenix area and Tempe stood out for us," says Lori Mason Curran with Vulcan Real Estate. "It's vacant but it's located on the light rail and ASU so our plans are to get it leased up as soon as possible."

It's welcome news for Tempe. The 260,000 retail and office space will soon be activated, and Paul Allen's group may not be done shopping in the valley.

"We’re looking at deals every day, it's just a matter of finding the right one," says Curran.

What lured Allen's company to the valley? They feel the Phoenix area is primed for an economic recovery and see good things ahead for the area.