Greenlaw Partners and The Broe Group have selected the Phoenix office of JLL to market a 90KSF office project in Tempe, Ariz., where the demand for high density space spurred demolition of a portion of the complex in exchange for a higher parking ratio. Greenlaw Partners and The Broe Group purchased the project for $3.5M.
Tempe 10/60 Corporate Center (formerly known as Corporate Fountains) is located at 4415 – 4625 S. Wendler Dr. in Tempe, alongside Interstate 10 and just south of the I-10/SR-60 (Superstition Freeway). The project originally totalled 110,000 square feet in two 45KSF, two-story buildings and one 20,000-square-foot, single-story building. Upon review of the property, Greenlaw and The Broe Group recognized the opportunity to add value to its investment through a number of key physical changes. In an effort to increase density, one of the project’s buildings—located at the center of the property—was demolished to create a two-building, 90KSF campus.
The demolition upgraded the project’s parking ratio from 5:1,000 to 7:1,000. The new owners plan to complete additional improvements in the coming months, including the demolition-rebuild of existing building interiors.
“This creates a greater corporate advantage and improved occupancy costs for our target users,” said Scott San Filippo, partner at Greenlaw Partners. “JLL is a great choice to market this asset in that they are a strategic partner in effectively positioning creative opportunities such as Tempe 10/60 Corporate Center. Phoenix has a lot of value-add opportunity and it will be a market where we look to remain active.”
“Going to this length to create a high density environment underscores Phoenix’s demand for this type of space,” said JLL Managing Director Dave Seeger, who is marketing Tempe 10/60 Corporate Center with JLL colleague and Managing Director Karsten Peterson. “A parking ratio of 4:1,000 or 5:1,000 is good, and 6:1,000 is great, but a ratio of 7:1,000 is outstanding.”
According to JLL’s Q1 2014 Phoenix Office Report, tenants across the Valley are beginning to see their already limited space options dwindle in hot submarkets like Tempe. This is driving up rental rates and creating growing upside potential for owners, including those with high-density space that is attractive to users like call centers, high tech companies and financial institutions.
“We’re excited about the opportunity to partner with Greenlaw on this acquisition,” said Jim Crawford of The Broe Group. “We’re bullish on Phoenix as well, but recognize that success is based on teaming with owners who are experts at adding value and who understand the dynamics of the tenants in the market.”
“Corporate America as a whole is moving toward the open office configuration—highly efficient, very flexible, higher density footprints,” said Peterson. “Adaptive reuse plays like Tempe 10/60 Corporate Center are a prime example of how owners can repurpose inefficient, zombie space to economically reposition a project.”
Originally built in 1985, Tempe 10/60 Corporate Center features 10-foot ceilings, floor-to-ceiling windows, generous landscaping and immediate freeway visibility and access to Interstate 10 via Baseline Road. It is minutes from the I-10/US-60 interchange, Arizona Mills Mall, Sky Harbor International Airport and Arizona Grand Resort.