Tag Archives: Fountainhead Office Plaza


Buchanan Street Partners closes $34.5M acquisition loan

Buchanan Street Partners, a national real estate investment management firm, has structured $34.5 million in bridge financing for the acquisition of two Class A office buildings in Tempe, Arizona. Along with its active equity investment platform, the firm is growing its lending activity for mezzanine debt and bridge loans in primary markets in the Western U.S. This transaction builds on the over 1 million square feet of commercial property the firm has acquired in the Phoenix area.

“Buchanan Street’s perspective as an owner itself is a decided advantage when providing structured debt for owners implementing value-add business plans,” said Chris Herthel, senior vice president of Buchanan Street Partners, who led the transaction.

The acquisition financing was provided to a joint venture between Cypress Office Properties and Harbert Management Corporation, with additional funds available for planned improvements and leasing costs. The buildings were 74 percent leased at closing.

The venture purchased Park Bridge and Park Garden, two Tempe office buildings totaling 287,000 square feet located at 1501 and 1620 W. Fountainhead Parkway in Fountainhead Corporate Park. The buildings benefit from a unique campus environment with ample amenities and parking, and a central location near downtown Tempe and Arizona State University. Fountainhead Corporate Park has good access to Interstate 10, US Route 60, and State Routes 143 and 202.

Tempe is one of the leading submarkets in Greater Phoenix, with a Class A office vacancy rate of 9 percent as of the third quarter of 2014. Submarket fundamentals and an experienced borrower were determining factors in Buchanan Street’s decision to fund the acquisition loan.

“This opportunity was a good match with our investment strategy to provide structured financing solutions where there is a good combination of an experienced borrower,
high-quality assets in transition, an attractive investment basis, and a market demonstrating positive trends,” added Herthel.

Fountainhead Corporate Park

New Class A Office Development Planned For Tempe

A new class A office development is planned for Tempe.

Metro Commercial Properties of Tempe and USAA Real Estate Company of San Antonio announced today they are planning the next phase of high-rise office development in Fountainhead Corporate Park in Tempe.

Current plans call for a 14-story, Class-A high-rise office tower totaling 384,300 SF, which the developers have named Fountainhead Park Summit.

In September 2009, Metro Commercial Properties and USAA Real Estate Company announced the development of two mid-rise office buildings, Fountainhead Office Plaza A&B, within Fountainhead Corporate Park. The 10 and 6-story Class A office buildings are situated along the I-10 Freeway in Tempe. The project won the 2012 RED Award for Best Office Project.

Fountainhead Office Plaza A&B was completed in the summer of 2011. The entire 439,070 SF development is leased to The University of Phoenix on a long-term triple net lease.

“The landscape within Fountainhead Corporate Park was dramatically impacted by the scale of the new construction for University of Phoenix. It was a shot in the arm for Fountainhead and we wanted to build upon the value and momentum created by the first two office buildings,” said Pat Duncan, chairman and CEO for USAA Real Estate Company. “Purchasing the adjacent 6-acre site was a logical next step for our development program and partnership with Metro Commercial Properties.”

Metro Commercial and USAA have selected Cushman & Wakefield as its exclusive agent to market and pre-lease Fountainhead Park Summit. The team of Mike Beall, Tim Whittemore, Chris Walker and Kathy Gibbs was selected after an extensive search and interview process of five market-leading office brokerage teams. Cushman & Wakefield will be charged with the assignment of finding a lead office tenant for the planned office project.

“Fountainhead Park Summit, centrally located in the valley at the convergence of major freeway corridors, gives corporate office users a competitive advantage in the attraction of highly skilled and affordable labor from both the East and West valley,” said Mike Beall, executive director of Cushman & Wakefield. “The fundamental strength of the location in attraction of labor, the unparalleled transportation infrastructure, and the visibility of the site are just a few of the reasons why we expect significant interest from large corporate users in this next phase of Fountainhead Corporate Park.”

Entitlements for the 14-story development were achieved in late 2010, with site plan approvals from the City of Tempe design review commission and amendments to the underlying PAD zoning, making Fountainhead Park Summit one of the few ‘shovel ready’ sites in Tempe. Davis Design Solutions, LLC provided the architectural design of the building and garage.

“The availability of large blocks of Class-A office space over 100,000 square feet is quickly diminishing. Much of what is currently available is ‘picked-over’, leaving older vintage Class-B office with smaller floor plates, insufficient parking, and inefficient and/or unreliable building systems,” added Tony C. Hepner, principal and CFO of Metro Commercial Properties.

“The efficiency and overall sustainability of a LEED certified building is a benefit to the corporate real estate and human resource professional. It not only lowers the overall occupancy cost of the real estate, but also serves a public relations benefit for the employer, which is critical in recruiting the best labor talent to the organization.”

For more information on this new class A office development planned by Metro Commercial Properties of Tempe and USAA Real Estate Company of San Antonio, visit Metro Commercial Properties’s website at mcpaz.com and USAA Real Estate Company’s website at usrealco.com.

Fountainhead Office Plaza

Fountainhead Office Plaza Earns Best LEED-Certified Development Of 2011

Fountainhead Office Plaza in Tempe, winner of the 2012 RED Award for Best Office Project, has been designated the Best LEED-Certified Development of 2011 by the Arizona Chapter of NAIOP.

The award recognizes the best new LEED development in the state of Arizona based on sustainable design, construction and operation.

NAIOP is a leading organization for developers, owners and related commercial real estate professionals, and provides industry networking, education and public policy advocacy.

KBS Real Estate Investment Trust II (KBS REIT II), a non-traded real estate investment trust based in Newport Beach, Calif., acquired the LEED-certified Fountainhead Office Plaza immediately upon its completion in 2011.

The two-building complex was designed and constructed per exact LEED standards and features an Energy Recovery Ventilator (ERV) that cleans incoming air, protects against pollutants and reduces energy costs.

Situated within the 140-acre master-planned Fountainhead Corporate Park, Fountainhead Office Plaza consists of 6- and 10-story buildings totaling 165,300 and 273,800 SF, respectively. Both buildings are 100 percent occupied through 2023 to the University of Phoenix, the nation’s largest accredited private university.

Developers of the project are USAA Real Estate Company and Metro Commercial Properties; general contractor is Sundt Construction; and architect is DAVIS, which won the 2012 RED Award for Architect of the Year.


2012 RED Awards: Winners & Honorable Mentions

Kitchell, DAVIS and Banner Health captured top honors Thursday night as Arizona Commercial Real Estate Magazine held the 7th Annual, 2012 RED Awards (Real Estate and Development) to recognize the biggest, best and most notable commercial real estate projects and transactions of 2011.

The event drew more than 400 CRE professionals to the Arizona Biltmore as winners and honorable mentions were selected from a record 116 nominations received in 12 project categories and individual and team broker categories.

Kitchell was named General Contractor of the Year; DAVIS was Architect of the Year; and Banner Health won Developer of the Year.

2012 RED Awards category winners:

Best Education Project: Grand Canyon University Arena; Best Hospitality Project: Westin Downtown Phoenix; Best Industrial Project: Dunn-Edwards Phoenix; Best Healthcare Project: Phoenix Children’s Hospital; Best Multi-Family Project: Devine Legacy on Central; Best Office Project: Fountainhead Office Plaza; Best Public Project: Virginia G. Piper Sports & Fitness Center for Persons with Disabilities; Best Redevelopment Project: Adelante Healthcare Surprise; Best Retail Project: iPic Theater/Tanzy/Salt; Most Challenging Project: Salt River Fields at Talking Stick; Most Sustainable Project: DPR Construction Phoenix Headquarters; and Best Tenant Improvement Project: Limelight Networks.

Merit Award winners were OASIS Hospital (Healthcare) and P.L. Julian Elementary School (Education).

Broker of the Year honors went to Jay Hoselton, Cushman & Wakefield, Individual Leasing; Ken Elmer, Commercial Properties Inc., Individual Sales; Bo Mills and Mark Detmer, Cushman & Wakefield, Team Leasing; and Tyler Anderson and Sean Cunningham, CBRE, Team Sales.

2012 RED Awards honorable mentions:

Education: NAU Health & Learning Center; Healthcare: Banner MD Anderson Cancer Center; Hospitality: Casino Del Sol Hotel Convention Center and Parking Structure Expansion; Industrial: Crescent Crown Distribution; Most Challenging: Arizona Science Center Phase III Remodification; Multi-Family: Phoenix Towers Terrace; Office: UniSource Energy Corporate Office; Public: Maricopa County Downtown Court Tower; Redevelopment: The Q Building at Paradise Valley Community College; Retail: American Sports Complex-Retail Center; Most Sustainable: Phoenix Children’s Hospital; and Tenant Improvement: Gap Fulfillment Center.

View photos from the 2012 RED Awards on our Facebook!

2012 winners can order Awards, Plaques & Reprints

RED Awards 2012 - Fountainhead Office Plaza

RED Awards 2012: Best Office Project, Fountainhead Office Plaza

On March 1, AZRE hosted the 7th Annual RED Awards reception at the Arizona Biltmore in Phoenix to recognize the most notable commercial real estate projects of 2011 and the construction teams involved. AZRE held an open call for nominations and a record 116 projects were submitted by architects, contractors, developers and brokerage firms in Arizona. This year, the winner for Best Office Project was Fountainhead Office Plaza.

Best Office Project

Fountainhead Office Plaza

Developer: USAA Real Estate Company/Metro Commercial Properties
Contractor: Sundt Construction
Architect: DAVIS
Size: 493,661 SF
Location: 1624 Fountainhead Parkway, Tempe
Completed: July, 2011

Fountainhead Office PlazaFountainhead Office Plaza A & B in Tempe is comprised of 6- and 10-story Class A buildings. The massive project, which is 100% percent leased to the University of Phoenix, began only after the challenging task of altering a neighboring lake and tearing down three buildings and parking structures. Once these were complete, construction of a 493,661 SF plaza could commence. The project sits on 12 acres and includes a parking structure that accommodates more than 2,000 vehicles. Fountainhead adheres to the significance of sustainability by incorporating an Energy Recovery Ventilator (ERV) that acts as a cleaner for incoming air, protecting against pollutants and reducing energy costs. The USGBC recognized Fountainhead Office Plaza with LEED Gold certification.


Video by Cory Bergquist

Honorable Mention

UniSource Energy Corporate Office

Developer: Ryan Companies US, Inc
Contractor: Ryan Companies US, Inc
Architect: DAVIS
Size: 200,000 SF
Location: 88 E. Broadway, Tucson
Completed: November, 2011

Video by Cory Bergquist

RED Awards 2012 Winners & Finalists

AZRE Magazine March/April 2012

RED Awards 2012

RED Awards 2012: Architect Of The Year, DAVIS

On March 1, AZRE hosted the 7th Annual RED Awards reception at the Arizona Biltmore in Phoenix to recognize the most notable commercial real estate projects of 2011 and the construction teams involved. AZRE held an open call for nominations and a record 116 projects were submitted by architects, contractors, developers and brokerage firms in Arizona. This year, the winner for Architect of the Year was DAVIS.

Architect of the Year


Winner of Best Office Project: Fountainhead Office Plaza
Winner of Best Tenant Improvement: Limelight Network
Honorable Mention for Best Office Project: UniSource Energy Corporate Office

Architect of the Year: DAVISDAVIS, an architecture and design firm that has designed more than 75 MSF in Metro Phoenix area, celebrated its 20th anniversary in style. Last year the firm successfully executed projects such as Starwood, Limelight, CantaMia, Fountainhead Office Plaza, and Unisource.

A few DAVIS project highlights include the design of Limelight’s 57,300 SF new Tempe corporate HQ and Fountainhead Office Plaza, consisting of a 10-story and 6-story Class A office building, with a parking garage achieving LEED Gold certification.

Additionally, DAVIS undertook Unisource, Tucson Electric’s new 530,406 SF new LEED Gold certified corporate HQ. DAVIS’ long standing client relationships, exceptional team members, and re-establishment of humanity in the architecture are what make it a successful firm.


Video by Cory Bergquist

RED Awards 2012 Winners & Finalists

AZRE Magazine March/April 2012

Fountainhead - AZRE Magazine September/October 2010

Office: Fountainhead Office Plaza


Developer: Metro Commercial Properties on behalf of USAA Real Estate Company
Contractor: Sundt Construction
Architect: DAVIS
Size: 439,070 SF
Location: 1601 & 1625 Fountainhead Parkway, Tempe

Located on an 11.33-acre redevelopment site in the Fountainhead Corporate Park, the plaza will consist of a 10-story, Class A glass and pre-cast office building, complemented by a 6-story Class A office building. A water feature will serve as a visual separation between the office buildings and garage, as well as a reservoir for non-potable irrigation water. Estimated completion is 2Q 2011 for the 6-story structure and 3Q 2011 for the 10-story structure.

AZRE September/October 2010