TEMPE, Ariz. (May 24, 2013) – The City of Tempe announced today that Ryan Companies US, Inc. and Sunbelt Holdings will develop a site owned by ASU adjacent to Tempe Town Lake. The project is subject to city council approval of a development agreement within the next month, the City of Tempe statement said. State Farm will lease the office space and serve as the project’s anchor tenant for the multi-use project.
The Marina Heights project in Tempe will be the largest office development deal in Arizona history, with more than 2-million-square-feet to be constructed on more than 20 acres. Construction costs are estimated at $600 million.
The five-building campus will be leased by State Farm and become a hub to include a combination of new hires and existing employees who will provide claims, service, and sales support to State Farm customers. According to Phoenix Business Journal, early estimates range from 5,000 to 7,000 new jobs to be created.
“State Farm selected Tempe because it has a growing population with skill sets that match our customers’ needs,” said Mary Crego, Senior Vice President, State Farm. “The site along Tempe Town Lake gives our employees access to nearby amenities as well as easy connections to public transportation.”
"We look forward to having State Farm as a neighbor and to working with the company on a variety of programs including employee recruitment and academic programs for their staff," said ASU President Michael M. Crow. "State Farm's decision to lease the land owned by the university immediately adjacent to the ASU Athletic Facilities District is the first major step in the campaign to fund new and renovated sports facilities for the university. The Athletic Facilities District will be home to an exciting mixed-use development reflecting high quality and the best practices of sustainability. A high stature tenant such as State Farm will add to the luster of the district and validates its attractiveness."
The project is being developed by Ryan Companies US, Inc. and Sunbelt Holdings. Tempe-based architectural firm DAVIS designed the project to include a 40,000 to 60,000-square-feet of retail such as restaurants, coffee shops and fitness facilities, and feature a 10-acre "lakeside plaza" open to the public.
In a separate transaction, CBRE completed a sale-leaseback of the State Farm Tempe Operations Center, a 372,408 sq. ft., 5-building corporate campus. The buyer was JDM II TOC, LLC of Phoenix. The campus is 100% occupied by State Farm Insurance that has signed a 10-year leaseback agreement. The insurer currently occupies about 1 million square feet of office space throughout the Phoenix Valley.
JDM and its principals, Jerry Colangelo, David Eaton and Mel Shultz purchased the campus for $73 million ($196 PSF). Built in 1999, the State Farm Tempe Operations Center is situated on 21 acres near Southern and Priest, within the master planned Fountainhead Corporate Park. The campus is comprised of four Class A office buildings and one inspection and storage facility, along with two above-grade parking structures.
Barry Gable, Mindy Korth and Chris Marchildon of CBRE in Phoenix represented the seller, State Farm Mutual Automobile Insurance Company of Bloomington, IL.
To contact State Farm's Robert Villegas call (480) 293-6018. ASU's Virgil Renzulli can be reached at (480) 965-8526. Sunbelt Holdings' Heidi Kimball should be contacted at (480) 609-2304. Sara Dial of the Ryan Companies US, Inc. is at (480) 205-6034. The CBRE Team of Gable, Korth and Marchildon are at (602) 735-5555.