Tag Archives: CarVal

Courtesy of Gensler

Manufacturing facility begins conversion into Millennial-focused office space

Construction and conversion has begun for The Circuit Tempe, a 190KSF high density class-A office project at 615 S. River Dr.

Jabil Circuit building before the conversion.

Jabil Circuit building before the conversion.

Formerly an industrial manufacturing facility for Jabil Circuit, the sizable building has been dramatically re-designed to serve as the Valley’s first speculative large-scale, millennial focused office property.  Situated on the Loop 101 and University Drive, the 16.5-acre property rests in the heart of a booming Tempe office market.  The Southeast Valley has recently attracted substantial interest from tech companies and large office users who are committed to attracting and retaining a young, educated workforce.

Gensler, a global architectural leader, has masterfully redesigned the masonry industrial building.  This cutting-edge architectural firm is known for its forward-thinking designs, such as the Facebook headquarters in Menlo Park, Calif., and the Riot Games headquarters in Los Angeles.

EverWest Real Estate Partners and CarVal Investors purchased the manufacturing project from Jabil Circuit Inc. in July 2014.  “This acquisition was underwritten for high-end office from the start,” said Curt Kremer, managing director of acquisitions with EverWest. “We identified the facility as a great opportunity for a project unlike any other in the marketplace.  The location at the Loop 101 and 202 and its proximity to Arizona State University is ideal for delivering our vision.  We believe this property will attract a range of businesses from across the user spectrum.  The recent change in our standard office culture is promoting a collaborative workplace to attract the millennial labor pool and we are committed to delivering a product to allow our end users to do just that.

The Circuit Tempe will feature indoor and outdoor spaces designed for efficiency, density and collaboration.  According to a new Cushman & Wakefield report ”Facing the Millennial Wave”, today’s millennial office users are seeking expansive floor plates conducive to the flexible, collaborative-based workspace concept. The “open space” ambience at The Circuit Tempe will be completed with 17-foot ceiling heights and an abundance of natural light through the addition of 60+ skylights, new 14’ floor to ceiling high-performance windows, and large glass roll up doors.

The Circuit Tempe will provide a unique combination of indoor and outdoor spaces for its Tenants.  Sizable landscaped patios will encourage outdoor meetings in a comfortable garden setting.  Outdoor bocce ball courts, misting systems, barbecues and flat screen TVs promote recreational breaks during the workday.

“This is truly an adaptive, re-use project,” says Kremer.  “We are re-purposing a wide variety of existing elements from the property’s previous manufacturing life.  Smoke hatches are being re-purposed into skylights.  Outdoor steel structures at the site are being re-made into benches and the existing security fences are being creatively applied to outdoor patio spaces and retention areas.  Concrete and masonry debris from the demolition will be saved and later added to the retention areas in a decorative fashion.   We have taken an obsolete manufacturing facility and applied the re-use and recycle theory to create a unique and exciting work environment.”

Young working processionals place priority on transportation options and convenience.  The Circuit Tempe contains a remarkably generous parking lot with a 7:1000 parking ratio and will also feature 140 bicycle racks for those who ride to work.  The property is 1.7 miles from Arizona State University, 7 miles from Old Town Scottsdale and 8 miles to the Phoenix Sky Harbor Airport

The Circuit Tempe is planned for completion in April 2015.  Jerry Noble, Pat Devine, Jackie Orcutt and Ryan Bartos of Cushman & Wakefield of Arizona serve as exclusive leasing agents for The Circuit Tempe.

Pima, WBE

Ross Brown Partners Brokers Scottsdale Office Sale, CarVal Investors Re-Enters Market

Scottsdale based Ross Brown Partners, Inc. arranged the $50M sale of two premier Class A office buildings within Scottsdale’s Pima Center. The buyer was CV MainSpring Pima, LLC , a venture between CarVal Investors & Scottsdale based MainSpring Capital Group. Located at 9000 and 9200 E. Pima Center Pkwy., the two nearly identical three-story buildings total approximately 272KSF. Originally developed through a JV headed by Opus West, the buildings were owned by a joint venture between two institutional capital partners and MainSpring Capital Group, Pima Center’s master developer. The buildings were 91.5% leased to nine tenants at the time of sale Bob Crum of Ross Brown Partners, a 35-year veteran of the Phoenix commercial real estate brokerage community and former NFL player, brokered the transaction to the buyer. CarVal Investors is a leading global alternative investment fund manager. Since 1987, they have invested $71 billion in 4,680 transactions across 70 countries. Today, CarVal Investors has approximately $10B in assets under management in both credit and real estate strategies.

“This acquisition was strategically in line with CarVal Investors’ global philosophy of recognizing and capitalizing on opportunity while efficiently managing risk. These buildings exemplify that balance between current return and potential upside,” said Mr. Crum.

MainSpring and its affiliated companies own millions of square feet of office and industrial projects in Arizona, Colorado and Pennsylvania. In the Phoenix metropolitan area, MainSpring entities operate 1.3 MSF of office and industrial projects, 100 acres of developable commercial land, 800 acres of residential land and the Las Colinas Golf Club in Queen Creek. MainSpring Capital will remain as the local operating partner for the property on behalf of the CarVal venture.

Ross Brown Partners, founded in 1990, is a full-service real estate services company focusing on leasing, sales and management of office and industrial properties in the Phoenix market. “We’re excited about this closing,” said Curtis Brown, Principal at Ross Brown. “It is of significant economic value, but importantly also represents a milestone on the road to recovery for the market in general and Scottsdale/Pima Center specifically. Having an experienced and savvy institutional investor like CarVal show confidence in our firm, the project, and our marketplace is noteworthy.”