Tag Archives: USAA Real Estate Company

Norterra Rendering 01

Norterra West breaks ground in Phoenix

USAA Real Estate Company of San Antonio, Texas, in association with Tempe, Arizona-based Metro Commercial Properties, has broken ground on a speculative office development in the I-17 / Deer Valley submarket in Phoenix. The development, named Norterra West, will include two (2), three-story Class-A office buildings approaching 300,000 square feet, and will capitalize on the pent-up demand for large blocks of quality, contiguous space from users looking to enter or expand into the economically attractive Phoenix labor market.

Norterra West — the first speculative office development to break ground within the City of Phoenix in the last five years — is situated on a 23.3-acre land site prominently situated along the northbound I-17 Freeway in north Phoenix, at 25700 and 25800 North Norterra Parkway.

Construction began in July 2015 on the first of the two planned office buildings at Norterra West. The site master plan and the architectural design of the first building were led by Tempe, Arizona-based design firm Davis; Wespac Construction is the general contractor. That first building is a three-story, 144,350 square foot, Class A office building that will be ready for tenant occupancy in June 2016. The building is LEED® targeted and will have a surface parking ratio of six (6) spaces per 1,000 square feet, with the ability to serve a parking ratio as high as 8 per 1000 with the construction of garage structures.

“Norterra West is one of the only large master-planned corporate office parks in Phoenix that combines excellent accessibility, new and efficient office product, walk-able retail amenities, and affordable residential opportunities into a cohesive park environment,” stated Ryan Foley, Principal and Chief Operating Officer of Metro Commercial Properties. “Norterra’s master plan governance includes very strong development standards designed to preserve the safe, secure and quality office environment required by corporate users to aggressively recruit and retain an educated and affordable labor base.”

A second phase office building has been entitled through the City of Phoenix Planning department, to be located immediately north of the Phase One Building, which when completed,

will accommodate employment growth at the Norterra West master planned corporate office park, to a total of more than 1,800 employees at the 2-building campus.

“Adding new high-quality speculative corporate office space is a good sign for the Phoenix economy,” said Mayor Greg Stanton. “Norterra West will help the City of Phoenix match prospective local, national and global employers with immediate and competitive office space while tapping into our educated and affordable labor base.”

USAA Real Estate Company has selected CBRE as its exclusive agent to market and pre-lease Norterra West. The team of Ashley Brooks, Jr., Jim Bayless and Jenny Aust Turner was selected given their extensive focus on the North and Northwest Valley submarkets, their long-standing relationships with many of the large corporate back-office users in the Deer Valley / I-17 submarket, and their proven experience working with Greater Phoenix Economic Council (GPEC) leadership, and the office of Phoenix Economic Development.

“Office vacancy rates in the Deer Valley office submarket remain above stabilized levels, but there is a shortage of large blocks of Class-A office that can provide the high-density parking ratios, power infrastructure, and large efficient open office environments that Fortune 500 companies want,” said CBRE’s Ashley Brooks. “With our partners at USAA Real Estate Company and Metro Commercial Properties, we hope to raise the bar and provide new office product that will be unmatched in the North Phoenix submarket.”

“USAA is catalyzing growth with innovative development in north Phoenix,” said Phoenix City Councilwoman Thelda Williams, in whose district Norterra West will be built. “Breaking ground on a Class A office development is a win for Phoenix because it attracts growth in other businesses and retail, and brings much needed office space to our market.”

Paradise Valley Medical Office

ARC Healthcare Trust buys Paradise Valley Medical Plaza

Plaza Companies and USAA Real Estate Company have sold a signature medical office building, Paradise Valley Medical Plaza, in Phoenix to American Realty Capital Healthcare Trust in a $28.3 million transaction.

Paradise Valley Medical Plaza, an award-winning, 104,000 square foot class-A medical office building, was purchased by American Realty Capital Healthcare Trust in a deal that closed on Dec. 30. Plaza will continue to provide leasing, construction services and property management for the building, which more than 90 percent occupied at the present time.

The building, which is located on the Abrazo Paradise Valley Hospital Campus, has received Energy Star Certification from the U.S. Environmental Protection Agency and was named Best of NAIOP Spec Office Development of the Year in 2009.

The property was sold by RP Paradise Valley, LLC, a joint venture between Plaza Companies and USAA Real Estate Company to ARHC PVPHXAZ01, LLC, which is a subsidiary of American Realty Capital Healthcare Trust.

“Paradise Valley Medical Plaza is one of our flagship developments and a true point of pride in our portfolio and the USAA portfolio,” said Sharon Harper, President & CEO of Plaza Companies. “We are very proud of this exceptional property and are excited to be able to partner with American Realty Capital moving forward to ensure excellent service to the property owner and tenants well into the future. This is a strong and forward-thinking ownership group that will continue the tradition of quality at Paradise Valley Medical Plaza.”

Plaza Companies and American Realty Capital Healthcare Trust currently work together on Arrowhead Professional Center in Glendale, a facility owned by American Realty Capital Healthcare Trust and managed by Plaza.

“This is an outstanding, high-quality medical office facility and is an ideal fit for our portfolio in the greater Phoenix area,” said Benjamin Hatz, Vice President-Acquisitions with American Realty Capital Healthcare Trust. “Our commitment moving forward is to continue the same commitment to quality and excellence at this facility while working with Plaza Companies to ensure superior service to current and future tenants.”


Plaza Companies, USAA Sell Arrowhead Center for $13.25M


Plaza Companies and USAA Real Estate Company sold Arrowhead Professional Center III, a 71,521 SF medical office at 18310 N. 79th Ave. in Glendale.

Arrowhead Professional Center, LLC, an entity formed by YAM Holdings (Dan Dahl, Manager) paid $13.25M to acquire the property.  The seller was RP Arrowhead, LLC, a partnership formed between Plaza Companies’ PDR 79, LLC and USAA Real Estate Company.

The sale was brokered by Cain Brothers RE, LLC of San Francisco and Plaza Companies of Peoria. Arrowhead Professional Center III is currently 89% leased.

The transaction includes an agreement between the new ownership and Plaza Companies where Margaret Lloyd of Plaza Companies will handle leasing for the project moving forward. Plaza Companies will also coordinate all construction services for the property.

“We are very pleased to reach an agreement on the sale of this exceptional medical office property,” said Sharon Harper, president and CEO of Plaza Companies. “We are also very pleased to continue to provide leasing and construction services moving forward to this strong new ownership group.”

Harper said that the sale is part of Plaza Companies’ ongoing efforts to pursue the right opportunities in property ownership, acquisitions, leasing and property management. The company continues to be aggressive on all fronts moving into the new year.


SkySong - Residential

Construction Set To Begin On SkySong Residential

SkySong, the ASU Scottsdale Innovation Center, is taking the next major step forward toward its eventual buildout, as construction is set to begin on 325 residential units.

The $44M project will mark the next major phase of the project, and will include the first residential units in the mixed-use project. The apartments will be built around the existing parking structure on the southeast portion of the project.

Construction will be done in four phases, with the first 83 units scheduled to open for occupancy in October 2013. All 325 units are scheduled to be built out by April 2014.

The apartments will feature innovative, modern architecture and a variety of floor plans to attract professionals who are employed in the area, as well as those who work on the SkySong campus. It will feature loft designs with private patios or balconies, granite and local stone accents, a large pool and Jacuzzi, an on-site exercise room and many other state-of-the-art features.

MT Builders is the construction firm responsible for the project buildout, and Lincoln Property Company has been selected as the property management firm for the project.

Don Couvillion, Vice President of Real Estate for the ASU Foundation, said the apartments will be highly competitive in the marketplace and serve a key need in the area around SkySong.

“We’re very excited to get this project under construction because we believe it has the potential to be highly successful,” Couvillion said. “The kind of high-quality residential component we are planning will meet a key market niche in the area and provide new residential opportunities for those wanting to live in this dynamic part of the Valley.”

Sharon Harper, President & CEO of Plaza Companies, said the residential component is a key part of making the SkySong vision a reality.

“SkySong has always been planned as a mixed-use development that provides an exceptional environment for living and working,” Harper said. “With this residential project underway, we are getting closer than ever to our goal of truly revitalizing this property and making SkySong an ideal destination for the kind of jobs and industries that will have a positive economic impact on our community.”

Plaza Companies is the master developer of the project, and although they are not directly participating in the construction of the apartments, other efforts on the site are underway as well. Plaza is developing the project in partnership with the Arizona State University Foundation and USAA Real Estate Company.

Work also continues on pre-leasing SkySong III and SkySong IV, the next two office towers to be built at the project. The two buildings would include approximately 300,000 SF of new development, and combined with SkySong I and II and the apartments, would bring the total square footage of development at SkySong to approximately 750,000 square feet.

SkySong, the ASU Scottsdale Innovation Center is a home to a global business community that links technology, entrepreneurship, innovation, and education to position ASU and Greater Phoenix as global leaders of the knowledge economy.

For more information on SkySong, visit www.skysongcenter.com.

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

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