Tag Archives: John Bonnell

CanyonVillage 8x5

JLL completes sale of DC Ranch project for $18.7M

On behalf of Arizona-based DMB, the Phoenix office of JLL has completed the $18.7 million sale of Canyon Village, a Class A mixed-use office project and cornerstone development within the DC Ranch masterplanned community in Scottsdale, Arizona.

JLL Senior Managing Director Dennis Desmond and Senior Vice President Brian Ackerman represented the property seller, Canyon Village LLC (an entity of DMB), in cooperation with DMB Vice President of Development Michael Burke and Director of Leasing and Sales T.A. Shover.

The team was assisted by Alfred Hackbarth, retail investment expert and Senior Vice President of SRS Real Estate Partners, and by JLL office leasing experts, Managing Director John Bonnell and Vice President Brett Abramson.

The buyer is Laurus Corp., a Los Angeles-based private real estate investment and development firm.

“As a DMB-built project, Canyon Village carries an unwavering quality and value in a niche location. There is no other office property quite like it in North Scottsdale,” said Desmond. “This buyer purchased Canyon Village knowing that Class A office space in Phoenix is coming back very strong and very quickly. They have tremendous confidence in that recovery and in this superior asset.”

Totalling 93,890 square feet on 5.6 acres, Canyon Village includes four buildings and an adjacent 289-car parking structure. It is located at 18801, 18835, 18867 and 18899 N. Thompson Peak Pkwy. in Scottsdale, on the northeast corner of Thompson Peak Parkway and Legacy Boulevard, and in the heart of DC Ranch, an 8,800-acre masterplanned community situated at the base of the McDowell Mountains. It is just five minutes from the Loop 101 freeway.

Canyon Village is primarily home to office tenants, but also includes high-end medical office, retail and restaurant users such as Ciao Wine Bar & Bistro and The Village Health Club’s hot yoga studio. It is an immediate neighbor to the award-winning DC Ranch Village Health Club and Spa, and Silverleaf, a 2,000-acre private residential community boasting high desert canyons, a world-class golf course, limited custom homesites starting at $1 million and ranging from 1 to 15 acres, and luxury homes from $1 million to more than $7 million. The 2014 median home value within a one-mile radius of Canyon Village was $608,782 – a more than 300 percent difference from the $195,930 2014 median home value for all of metro Phoenix.

“It is rare to find all of these amenities in one location – a landmark site, a highly designed formal Mediterranean environment, almost unrivalled access to executive housing and decision makers, a highly educated labor pool and meticulous property management,” said DMB Vice President Mike Burke. “We took all of these factors into consideration when building Canyon Village, laying a strong foundation for a long-term success story.”

At the time of purchase, Canyon Village was 75.9 percent leased, with expectations that this figure will increase quickly as development continues around the site and the Phoenix office market enjoys a sustained recovery.

According to JLL research, the subset of Phoenix’s Class A office space is significantly outperforming all other office classes. As of year-end 2014, the Class A vacancy rate was 18.7 percent (compared to 21.4 percent Valley-wide) and accounted for 60 percent of the year’s total net office space absorption.

Camelback Commons, CushWake, WEB

Premier Business Centers inks 1st Arizona lease

Cushman & Wakefield of Arizona, Inc. has negotiated a lease on behalf of Premier Business Centers for its first opening of executive office suites in Arizona, located at Camelback Commons, 4742 N. 24th St.

The company, which is headquartered in Irvine, Calif., has signed a 10-year lease for 13,516 square feet on the third floor of the building.  The company plans to open its executive suites facility in March 2015.  The Premier Business Center will include 53 executive suite office spaces, two meeting rooms, a day office, kitchen and reception area.

“We are excited to enter the Arizona marketplace and provide our services to the state’s growing business community,” says Jeff Reinstein, Chief Executive Officer of Premier Business Centers.  “This is the first of several locations we plan to open in dynamic business corridors within the city.”

“This particular building provides a great central location in the Camelback Corridor, which is very appealing to executives who operate small companies or are in an incubation phase of their businesses,” says Larry Downey, Vice Chairman of Cushman & Wakefield.
Premier Business Centers, LLC is one of the country’s leading operators of executive suites and office centers.  Offering more than 70 locations throughout the United States, Premier Business Centers provides professional work environments that can be rented by the hour, day, month or year.

Downey exclusively represented Premier Business Centers in the site selection search and lease negotiations.  John Bonnell and Brett Abramson of JLL represented MS MCC Highland, LLC., owner of Camelback Commons.

The Esplanade

JLL earns exclusive leasing assignment for Esplanade office towers

After an extensive vetting process, the Phoenix office of JLL has been selected as the exclusive leasing agent for the four Class A office towers at The Esplanade, a 1-million-square-foot landmark mixed-use project located at 24th Street and Camelback Road, in the heart of Phoenix’s prestigious Camelback Corridor.

JLL Managing Director John Bonnell and JLL Vice Presidents Brett Abramson and Greg McMillan will direct all office leasing efforts for The Esplanade’s 10- and 11-story, Class A office towers. The buildings were constructed between 1989 and 2002, and represent a total 906,459 square feet of space at 2425, 2525, 2575 and 2555 E. Camelback Rd. Each tower features high-end finishes, panoramic views of Camelback Mountain and Piestewa Peak, private balconies, 24-hour security, on-site conference and fitness facilities, concierge and abundant covered parking.

JLL is also working with property owner by MetLife, Inc. as it implements extensive, project-wide renovations that are delivering new building lobbies, new corridors, an upgraded amenity package and new speculative office suites.

“The Esplanade represents some of the Valley’s nicest office space in an equally premier location. It is one of those iconic projects that checks virtually every box on the tenant and employee wish list,” said Bonnell. “It also has an owner that recognizes the value of these advantages, and will make the investment necessary to ensure The Esplanade remains a market leader for the long term.”

In addition to its office towers, The Esplanade includes a first-floor retail component, fine and casual dining, a 14-screen AMC Theatre, a 291-room Ritz Carlton Hotel, and a pedestrian-friendly design that links the project to neighboring Biltmore Fashion Park, one of the metro area’s most upscale shopping and dining environments.

The Esplanade is within one mile of Piestewa Freeway/State Route 51 and minutes from the Valley’s Loop freeway system, Interstate 10, Downtown Phoenix and Sky Harbor International Airport. These factors combined to rank Camelback Road as #34 on JLL’s list of Most Expensive U.S. Streets for Office Space in 2013—an overview of the nation’s most premier, in-demand submarkets for office space.

JLL Report

As Phoenix Suburban Office Markets Recover, Skyline Poised to Follow

“Game on” seems to be the sentiment of Phoenix office tenants as they continue to bounce back from the recession, albeit with smaller work spaces that must achieve greater efficiencies with a reduced footprint. Suburban office markets—primarily in Tempe, Chandler and the Camelback Corridor—that are close to employees and offer higher-density parking are leading this trend, according to JLL’s Spring 2014 U.S. Skyline Review. (see link below)

“The Phoenix Skyline experienced the full force of the recession, and most of its tenant base shed jobs and reduced their real estate footprints in response,” said Dennis Desmond, Senior Managing Director in the Phoenix office of JLL. “But Phoenix jobs are returning, and with them a steady growth in occupancy that is tightening and pushing rental rates Valley-wide. Over the next several years, we expect this to have the same impact on the Downtown and Midtown Skyline submarkets.”

JLL’s proprietary Skyline report identifies and tracks micro-segments of 43 city centers across the nation. The Skyline features Trophy and Class A buildings where tenants and investors focus demand for office space in a flight to quality and efficiency. (Check out the themes that shape the U.S. skyline.)

Though the direct vacancy rate for Phoenix’s Skyline still sits at 22.9 percent, sights are set on rapidly improving Skylines across the nation—where competition for office properties in 2013 propelled the national vacancy level to an average 13.4 percent.

“If you look at the JLL Skyline Clock, Phoenix sits squarely between the ‘Bottoming Phase’ and the ‘Rising Phase’,” said John Bonnell, Managing Director in the Phoenix office of JLL. “This is a perfect storm for tenants who appreciate the price differential, central location and amenities that Downtown and Midtown have to offer. It’s an opportunity that we remind our clients about constantly, and one that we expect to continue throughout 2014, since new construction is also very limited.”

In spite of tightening market fundamentals, construction activity in Skylines across the nation remains low. Seven U.S. Skylines—including Phoenix—show no current development. Two Skylines indicate just one proposed project.

”The lack of development is causing a space crunch on each end of the spectrum,” said John Sikaitis, Managing Director of Research at JLL. “Trophy properties are far outperforming the broader market with respect to occupancy levels and rents, and a similar tightening exists in value-add properties. This squeeze from both ends is expected to have a significant impact on the properties in the middle as tenants are being priced out of their former go-to options.”

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