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Continuum Aerial, WEB

Continuum Business Park Sells for $51.75M

Southwest Value Partners has purchased Continuum Business & Technology Park, located at 2501 S. Price Rd. in Chandler, from Capital Commercial Investments. The business park, which currently consists of a ±463,300 SF, Class-A office building on 152 acres, commanded a sale price of $51.75M.

Luke Walker and Dave Carder with CBRE’s Phoenix office were awarded the leasing assignment of Continuum and negotiated the sale with Kevin Miller with Capital Commercial Investments. Cassidy Turley’s Executive Managing Director Jeff Wentworth brought an unsolicited offer to CCI on behalf of Southwest Value Partners. Cassidy Turley’s Wentworth, Mike Beall, Sean Spellman and Chris Walker have been awarded the assignment by SVP to secure tenants and users for the Continuum. The seller was Austin, Texas-based Capital Commercial Investments, Inc. The buyer was Southwest Value Partners of Scottsdale.
“Continuum is one of the preeminent business parks in Arizona and its location is in the heart of the most active office submarket in metro Phoenix,” said Justin Merritt, Senior Investment Professional with SVP.  “We look forwarding to working with the City of Chandler and putting our energy towards driving new development and employers to the project.  Continuum provides our firm with a tremendous opportunity to grow our real estate portfolio by taking advantage of the market recovery in the Phoenix Metropolitan Area.  This includes implementing a build-to-suit strategy to develop office buildings on the remaining vacant land parcels.”

SVP also owns an additional 38-acre parcel that is immediately adjacent to the Continuum business park that will effectively expand the size of the business park to nearly 190-acres.  “As a result of our expanded ownership, we can develop buildings ranging from 30,000 to 500,000 square feet,” said Merritt

. “This submarket has seen a profusion of build-to-suit activity recently, with Garmin, General Motors, Shutterfly, GoDaddy and Amkor Technologies,” Wentworth explained. “There is not a more active market in Phoenix right now and the quality of labor, housing and amenities is driving the demand.”
“The sale of Continuum validates the vision, investment and hard work shared by Capital Commercial Investments and the City of Chandler. The successful public-private partnership allowed the former Motorola campus to be completely redeveloped into a world-class business park, attracting several new companies while bringing net new jobs to the City of Chandler. We congratulate everyone involved in the success of bringing Continuum to this exciting milestone,” said CBRE’s Carder.

Continuum currently features an existing, redeveloped, two-story ±463,000-square-foot, class A office building. The building was entirely renovated with a new three-story atrium lobby, curtain wall glass, upgraded HVAC systems and state-of-the-art electrical and fiber infrastructure. These renovations were completed in January of 2013.

Additionally, the redevelopment of the former Motorola campus included the construction of major infrastructure and horizontal improvements across the 152-acre property, including new landscaping, roads, sidewalks, lakes, water features and public gathering spaces. The City of Chandler was an integral partner in the redevelopment process and made joint investments in the park infrastructure and horizontal improvements.

In June of 2013, Continuum Business & Technology Park signed its first major tenant, Nationstar Mortgage. Nationstar, one of the nation’s leading mortgage servicers and lenders, initially placed 1,200 new jobs in 164,000 square feet of space with an option to expand.

Shortly after landing Nationstar, Continuum secured its second major tenant with the signing of a lease with OnTrac, also represented by CBRE’s Carder. The locally based overnight delivery service moved its headquarters from Phoenix to Chandler and into 65,000 square feet of space that was customized for the tenant. OnTrac employs around 300 employees with aggressive plans for growth; the company’s president has been quoted saying OnTrac plans to bring 850 jobs to Chandler over the term of the lease.

Continuum also includes a 10,000-square-foot University of Arizona learning center, where the higher-education institution is able to meet the educational needs of Chandler’s high-tech workforce by offering programs, classes and research, as well as recruiting other educational institutions.

Continuum currently has 81 acres of developable land remaining and businesses and developers have opportunities for unique ground-up development in the form of build-to-suit and spec building options. Depending on densities and product type (industrial vs office), between 2 MSF and 3 MSF can be developed moving forward.
The existing office building at Continuum was built in 1986 by Motorola and was renovated in 2012 by Capital Commercial.  The building is currently 48 percent leased with two tenants, Express Messenger Service (OnTrac) in ±60,000 square feet and Nationstar Mortgage in ±163,000 square feet, leaving ±230,000 square feet of available space for prospective tenants. “The building’s unique design with an on-site cafeteria, large floor plates and high volume ceilings provides office users with the exact environment that today’s office tenants desire to attract the best employees” said Wentworth.

GCU Campus, Eastmark

Boiling Point: The Southeast Valley Heats Up 2013

Arizona’s development is expected to have a hot few years ahead of it, but no place is more on fire right now than the East Valley. General Motors announced its move to Chandler last March, with the promise of 1,000 tech-related jobs. GoDaddy broke ground in May on a Global Technology Center in Tempe. On July 30 and 31, more than $1B in economic development projects, with the Marina Heights and USA Place headquarters, were announced along Tempe Town Lake, and Grand Canyon University announced a second campus to be built in the master planned community Eastmark in Mesa, bringing thousands of jobs to the Valley. Before the end of the year, the state squeezed in another deal — Apple bought a former First Solar factory in Mesa, which will bring with it 2,000 jobs.

TEMPE
“Capital investment and the number of jobs increased substantially over (2012),” Tempe reports in its mid-year 2013 economic development budget plan for 2014, “and economic developers participated in locating companies to Tempe resulting in 12,503 jobs, with 3MSF of Class-A office space being developed and/or absorbed with a capital investment exceeding $704M.”
The city also announced two developments totaling $950M in summer. Marina Heights, a 20-acre, $600M development is the largest office development in the state and is anchored by 6- to 16-story buildings. The home of the new State Farm regional headquarters is expected to attract thousands employees. Within 24 hours, the city also announced the $350M development of USA Place headquarters, which will include a 330-room luxury hotel, a 30,000SF conference center, apartments, office and retail space as well as five full basketball courts and a 4,500-seat event center. It’s estimated this attraction will annually bring 300,000 people to Tempe.

MESA
When the recession hit Mesa, the city made cutbacks that included giving up $100,000 in capital and decreasing the economic development staff by 40 percent. The city filled a budget gap and continued to invest in the infrastructure for key projects and took advantage of lower cost construction; the Cubs spring training facility, known as Cubs Park, was contemplated at the bottom of the recession in 2009, and development of State Highway 24 has been expedited with the knowledge that the state will reimburse Mesa.
“We have a strong bond capacity because we made those cuts early on,” explains Mesa’s Director of Economic Development Bill Jabjiniak. “As we’ve come out of this, we’ve been able to handle projects people are a little surprised about.”
The city self-funded the aforementioned $84M stadium and spring training complex plus the $15M infrastructure and park leading to the stadium. The park will have a $137M impact on Arizona. Another big player is the Phoenix-Mesa Gateway Airport, which generates $1.3B in economic benefits and 10,470 jobs in or around the airport, according to a report by ASU’s W. P. Carey School of Business.
The city is now home to five “legacy” institutions, which consist of satellite campuses for established liberal arts schools, and Grand Canyon University announced its intent to build a 160-acre, second campus at the master planned community, Eastmark expected to open in 2015 with a seven-year build-out.

CHANDLER
When Motorola left a 152-acre hole in Chandler’s Price Road Corridor, the city had to decide between a “quick fix” or staying true to the space’s identity as an innovation hub equipped for technology.
“We were at a crossroads 10 years ago,” Mayor Jay Tibshraeny says. They had the option to convert the space to residential, but the mayor adds, “Our vision is not to do what’s easy but to maintain it as a job-creator and an employment center.”
That site is now Continuum — a 152-acre campus primed for business and tech with a capacity for thousands of employees.
Chandler has added 4,800 jobs since the recession. It has the largest data center in Arizona, and in August 2012, Intel invested more than $300M to build an R&D facility near its existing Chandler campus, which now employs 10,000 people. Wells Fargo broke ground in December on a 410,000 SF expansion at its downtown campus. This would nearly double the existing structure, providing an estimated 2,500 new jobs to the area. General Motors will add another 1,000 jobs to the city this year.

GILBERT
The Town of Gilbert is one of the fastest growing metros in the Valley. It has seen a consistent increase in commercial permits since 2010 and 3MSF of development since it came online the Loop 202 five years ago. The town also added 10,000 jobs in that time and $1.1B in capital among 200 companies. Gilbert has also seen significant development off U.S. Route 60, with Banner MD Anderson Cancer Center’s expansion. Gilbert also will welcome its first four-year and graduate institution in Chicago-based St. Xavier University.

Call Center, McCarthy Nordburg

55KSF OnTrac Call Center and Headquarters Completed

McCarthy Nordburg announced the completion of OnTrac’s new 55,000 SF call center and headquarters located in the Continuum project at 2501 S. Price Road in Chandler on Friday. The company has grown rapidly and the design addressed the tenant’s desire for a space that reflects its company culture and brand. Allen Arrington and David Hobart were the design team from McCarthy Nordburg. Stevens Leinweber was the general contractor and Facilitec provided the interior furnishings. Call Center3, McCarthy Nordburg

Rendering of Continuum business park in Chandler. (Courtesy of PHArchitecture)

OnTrac Moves Corporate Headquarters, 850 Jobs To Continuum In Chandler

 

OnTrac, a regional overnight package delivery service in eight Western states, is moving its corporate headquarters to Chandler, and Continuum Business Park.

The new offices are located in the Price Corridor at 2501 S. Price Rd. The new building provides the company with additional space and the opportunity for future growth.  It will also allow OnTrac to grow its company culture and continue raising the bar for OnTrac’s standard of excellence.  The company will occupy 65,000 SF of space in the building, with an option to expand.

“We’ve begun construction and will spend in excess of $5M on the relocation of our corporate headquarters,” said Rob Humphrey, president of OnTrac. “And, we expect to bring more than 850 jobs to the City of Chandler over the term of the lease.”

“Chandler’s central location and quick access to the interstate and freeways make it an excellent choice for businesses that have a diverse workforce,” said Jay Tibshraeny, Mayor of Chandler. “We are seeing the benefits of that as businesses such as OnTrac and other notable companies choose to locate in the Price Corridor.”

OnTrac joins other employers in the Price Corridor in key industries of aerospace, life sciences, high technology R&D/manufacturing and advanced business services.

OnTrac is currently occupying space in Phoenix until improvements are completed.

 

Continuum - AZRE Magazine September/October 2010

Office: Continuum

CONTINUUM

Developer: Capital Commercial Investments
Contractor: By public bid
Architect: PH Architecture
Size: 2.8M SF of planned product with a 512,000 SF existing corporate office/ R&D facility
Location: 2501 S. Price Rd., Chandler

The 152-acre science and technology campus includes corporate headquarters, data centers and expanding industries such as bioscience, renewable energy and advanced business services. An existing corporate office/R&D facility offers an electrical substation and water supply. Estimated completion value $750 M; renovation and construction to being in fall 2010.

AZRE September/October 2010