The following leases were reported for the Phoenix Lease Report September 22-26, 2014

OFFICE SPACE – 1700 N DESERT DR., TEMPE
Phoenix, Ariz. – Greenville, NC-based Regional Acceptance Corp. leased a 40,000-square-foot office at Papago Technology Center located at 1700 N. Desert Drive in Tempe, Ariz.

Bryan Taute with CBRE represented the landlord, WDP Partners of Phoenix. The tenant, a division of BB&T Bank, was represented by Jason Moore and Keith Lammersen with JLL.

“This lease is another good example of a new office user to the market being drawn to a centrally located building that allows them to easily attract new employees,” said CBRE’s Taute.

Regional Acceptance Corp. is looking to capitalize on Papago Technology Center’s location in the heart of one of metro Phoenix’s most desired labor pools and plans to hire approximately 300 new employees to staff the center. The company also plans to make significant improvements to the newly-leased space in order to offer future employees a state-of-the-art, modern facility. The company plans to take occupancy of the space in March 2015.

Built in 1993, Papago Technology Center is a 75,000-square-foot flex/office building located in the heart of Tempe and one of metropolitan Phoenix’s largest, most-desired labor pools. The property benefits from direct access to the light rail system via the station at Washington Street and Priest Drive as well as proximity to the Loop-202 via Priest Drive. The property currently has 33,795 square feet of remaining space available for rent.

INDUSTRIAL SPACE – 5502 W BUCKEYE AVE., PHOENIX

Elontec has leased 28,231-square-feet of space, which is an expansion for the company at to 5502 W. Buckeye Avenue in Phoenix. This lease brings the 103,400-square-foot Freeport Industrial Center to 100% occupancy.

Elontec, an award-winning, woman-owned office furniture, relocation and cabling company, will consolidate its operations and relocate its corporate headquarters currently at 5402 W. Roosevelt St., Phoenix. Elontec plans to relocate in October.

The company will be consolidating two spaces that total approximately 24,000-square-feet and moving operations to Freeport Industrial Center. Elontec will be hiring additional workers as part of the expansion.

Cushman & Wakefield negotiate the long term lease. “This space sat vacant for more than 18 months before we were enlisted to market the property,” said Justin LeMaster of Cushman & Wakefield . “Based on our strategic marketing approach and relationships in the brokerage community, we were able to completely negotiate the deal within two weeks of receiving the assignment.”

LeMaster, Mike Gilbert and Paul Sweetland, SIOR, of Cushman & Wakefield’s industrial division represented the landlord, Environmental Development of San Diego. Ted Liles of Cresa represented Elontec.

OFFICE SPACE – SCOTTSDALE EXECUTIVE OFFICE CENTER

Cushman & Wakefield of Arizona, Inc. negotiated 21,085-square-feet of new leases at Scottsdale Executive Office Center, 15880, 15990 and 16100 N. Greenway-Hayden Loop.

Ingram Micro, Inc., a Santa Ana, Calif.-based firm, opened a technology incoming call center and occupies 14,926-square-feet and PHX Architecture relocated from a central Scottsdale location into 6,159-square-feet.

“The Scottsdale Executive Office Center meets the needs of tenants who require dense floor plans with 5.77:1000 ratio parking to go with it,” said Chris Nord, Associate Director with Cushman & Wakefield of Arizona, Inc. “The bay depths allow for efficient floor plans and a 1% load factor keeps the required size of the premises smaller than competing office properties.”

Nord and Michael White of Cushman &Wakefield represented the landlord, Perry Investment Trust No. 1. Mark Seale of Cassidy Turley represented Ingram Micro. Victor Gilgan and Scott Fey of Omni America, LLC represented PHX Architecture.

Both tenants took occupancy this month, bringing the property to 87% occupancy. Other tenants include Trivita, Stella & Dot, MWA Intelligence, and Landmark Education.

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RETAIL – ENCORE PLAZA SHOPPING CENTER, GILBERT
Health Angels, LLC dba TrueRest leased 2,147-square-feet in Encore Plaza Shopping Center recently. The location of the property is at Baseline & Gilbert Road in Gilbert, AZ. Jim Edwards of Rein & Grossoehme Commercial Real Estate represented the landlord and Carl Jones & Gordon Heckaman of DeRito Partners represented the tenant.

RETAIL – 1066 N POWER RD, MESA
Mesa Comics leased 1,500-square-feet at 1066 N. Power Road Mesa, AZ recently. The landlord is 1066 North Power, LLC. Jake Ertle and Jim Edwards, both of Rein & Grossoehme Commercial Real Estate represented the tenant and landlord.

RETAIL – THE PALMS SHOPPING CENTER, PHOENIX
99 Cent Plus leased 900-square-feet in The Palms Shopping Center recently. The location of the property is 15620 N. 35^th Ave. in Phoenix, AZ. Richard Mackay of Rein & Grossoehme Commercial Real Estate represented the landlord and tenant.

Expanded Domestic and Global Capabilities Enhance Client Service Platform

WASHINGTON, DC – Cassidy Turley, a leading commercial real estate services provider in the U.S., announced today that it has entered into an agreement with an affiliate of DTZ Investment Holdings, backed by TPG, PAG Asia Capital and Ontario Teachers’ Pension Plan (the Consortium that agreed to acquire DTZ), to sell 100% of the equity interests of Cassidy Turley.  The agreement is subject to customary closing conditions and is dependent on Cassidy Turley’s combination with the operations of DTZ Group (DTZ) to create a global, full-service commercial real estate services company. The Consortium’s acquisition of DTZ is currently scheduled to close around October 31, 2014. The acquisition of Cassidy Turley is expected to close on December 31, 2014.

DTZ’s full-service capabilities throughout Europe and Asia coupled with Cassidy Turley’s legacy of strong local market leadership and penetration in the U.S. will immediately position the new company as a top global commercial real estate services firm. The combination of Cassidy Turley and DTZ, which will retain the DTZ brand, will create a company with revenues of more than $2.9 billion and more than 28,200 total employees. As a result, the firm will be able to more effectively serve its clients and compete for new business anywhere in the world.

“Following a period of intensive mutual due diligence, we are confident that this combination is an excellent cultural fit as well as an opportunity to partner with a global brand,” said Joseph Stettinius, Jr., Cassidy Turley Chief Executive Officer.

“The Consortium is very pleased that DTZ Investment Holdings affiliate has reached an agreement to acquire Cassidy Turley after closing of the DTZ transaction. Cassidy Turley is a leading real estate services business in the U.S. and will complement DTZ’s existing very strong businesses in Asia and Europe as well as DTZ’s existing U.S. businesses,” said Ben Gray, Managing Partner, Asia, TPG.

“We are excited that Brett White, former Chief Executive Officer of CBRE Group, is investing in the acquisition alongside the Consortium and will be joining the Board of Directors once the DTZ transaction is completed, before becoming Executive Chairman of the new company in March 2015.  In addition, we are pleased Tod Lickerman will continue in his current role as Global Chief Executive Officer of DTZ, while Joe Stettinius will become Chief Executive of the Americas,” added Mr. Gray.

A combination with DTZ presents a minimal overlap in leadership, infrastructure and market coverage in the U.S.  Joe Stettinius will work in partnership with Tod Lickerman and Brett White to develop a plan to integrate the Americas business and create an innovative market leading platform.  DTZ’s existing Americas Facilities Management business will remain part of DTZ’s Global Occupier Services organization.

“I want to recognize all of our professionals for their hard work and performance. Their focus on operational excellence and client service as well as our clients’ continued confidence in our people and platform positioned us for this opportunity to combine with DTZ. The combined companies will create a game-changing organization – not only for us but for the entire industry,” added Mr. Stettinius.

PHOENIX – Cassidy Turley, a leading commercial real estate services provider in the U.S., has announced that Amargosa Palmdale Investments, LLC of Beverly Hills, CA, purchased Southern Plaza, a ±75,233-square-foot neighborhood shopping center located at 6036 S. 7th Avenue in Phoenix for $11.9 million ($158 PSF).

Executive Managing Directors Ryan Schubert and Michael Hackett with Cassidy Turley’s Retail Capital Markets Group represented the seller, Park West Development of Scottsdale, AZ.

“Southern Plaza offered the buyer the opportunity to own a stabilized, high-volume grocery center with the potential to add value through ground leases or development of additional outparcels,” Mr. Schubert said. “The Food City performs very well and currently accounts for over 73% of the center’s total square footage.”

Built in 2007, Southern Plaza was 95.3% occupied at the time of sale. The property is anchored by a ±55,014 square foot Food City (Bashas’) grocery store and includes ±20,219 square feet of additional shop space and two developable pads. In addition to Food City, Southern Plaza’s tenant mix includes Payless ShoeSource, Grand Mart, Pizza Patron, AA Insurance, Rapido Tax and locally owned operators of a hair salon, nail salon and dentist. Southern Plaza is located in densely populated trade area that services over 102,000 residents within a three mile radius of the center.

To learn more Schubert should be contacted at 602.224.4472 while Hackett can be reached at 602.224.4449.