Newmark has arranged the $37.5 million sale of the former State Farm regional headquarters campus located at the southwest corner of Priest Drive and Alameda Drive in Tempe, Arizona. The 25-acre property comprises approximately 462,000 square feet of office and includes two structured parking garages.
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Newmark Executive Managing Directors Barry Gabel, Chris Marchildon and CJ Osbrink, Managing Director Gary Cornish and Associate Nico Burgarello, in collaboration with Director Erin McClure, represented the seller, JDM Partners, a Phoenix-based private real estate investment and development firm, in the transaction. The buyer was Panattoni Development Company, which recently received unanimous city council approval to redevelop the property into a state-of-the-art, two-building industrial project following the close of escrow.
“This sale represents a notable transaction for the Metro Phoenix market, following a trend of suburban office being redeveloped into higher and better uses,” said Gabel. “Our team is tracking over seven million square feet of office across the Valley that is expected to be redeveloped or converted, including this property.”
“We had been looking for an in-fill site here in Metro Phoenix and are thrilled with this project, which we are calling ‘Tempe Exchange’,” said John DiVall, Partner, Panattoni Development. “These modern buildings with structured, covered parking – a first for the market – will be well received.”
The approved redevelopment plan preserves the 858-space parking garage at the Southwest corner of the site, providing abundant and covered parking to support the new industrial development. The heavy power planned for each building positions them well to attract advanced manufacturing users and other tenants with significant power and parking requirements. The site sits adjacent to the Broadway Industrial Park and is within minutes of Arizona State University’s main campus.
Cornish added, “This property represents an exceptional industrial redevelopment opportunity in the heart of the Valley, offering unmatched freeway access, functional lot configuration, and scale in a land-constrained submarket. With more than 70 million square feet of industrial and flex
Press Contact: Alexa Nestlerode t 949-608-2170 alexa.nestlerode@nmrk.com Deb Bergman t 303-260-4307 deb.bergman@nmrk.com
space within a five-mile radius, approximately 90% of which was constructed prior to 2000, the site presents a compelling opportunity for Panattoni to deliver a best-in-class project in a market that is severely undersupplied with modern product.”
