Brings landmark Camelback Corridor project to 96 percent leased

PHOENIX, AZ– Phoenix Children’s Hospital has committed to a 27,265-square-foot office lease at Biltmore Commerce Center, a Class A Camelback Corridor office building that was purchased just months ago by office investment and management expert Lincoln Property Company (LPC) and a fund managed by Oaktree Capital Management, L.P. (Oaktree). The company will move into Biltmore Commerce Center next month, bringing the project to 96 percent occupied.

The is the first lease new deal signed by the building ownership, which purchased Biltmore Commerce Center as part of more than $165 million in Phoenix-area investment activity in the early months of 2015.

“PCH was looking for a location close to its main hospital that could provide office-specific space for its growing administrative and executive functions. With its location and efficiencies, Biltmore Commerce Center fit that bill precisely,” said Lincoln Property Company’s Vice President Amr Ceran.“We are very pleased to welcome PCH to our tenant mix, and look forward to putting this project’s full advantages to work for them.”

Under the lease, Phoenix Children’s Hospital will ultimately occupy 27,265 square feet of space – a full wing on the project’s second floor. They will use the space for executive offices and for administrative functions including human resources and accounting.

Scott Maxwell of CRESA represented Phoenix Children’s Hospital in the lease negotiations. Lee & Associates’ Bill Blake, Craig Coppola, Andrew Cheney and Colton Trauter represented the landlord.

LPC has also completed a number of lease renewals at the project since its purchase, including Extreme Consulting and Strategy Wealth Management.

Located at 3200 E. Camelback Rd., on the northeast corner of Camelback Road and 32 Street in Phoenix’s prominent Camelback Corridor, Biltmore Commerce Center is known for its Alucobond® metal panel exterior and highly visible, street-facing water feature. The project totals three stories and 259,000 square feet, with efficient floorplates and an 11,000-square-foot, newly remodeled three-story atrium running through the interior first floor. It also includes ground-level parking and subterranean parking that provides quick and direct access to all tenant floors via two separate elevator banks.

Additional project renovations and features include remodeled corridors and lobbies, upgraded landscaping and the new street-facing water feature. The property has earned an average 94-point Energy Star rating over the past six years. In 2012, it was named The Outstanding Building of the Year (TOBY) by the Building Owners and Managers Association (BOMA).

The project sits across the street from two retail projects, with numerous dining, shopping and business services options.

“This is a true landmark Phoenix property, with the full support of LPC’s more than 50 years of asset and project management expertise behind it,” said LPC Director of Management Services Alisa Timm, who directs the project’s property management strategy. “Amenities like the central atrium and high-tech touches give it the power to remain at the top of the market.”

With the Phoenix Children’s Hospital lease, Biltmore Commerce Center is now almost 96 percent leased to a broad group of tenants including HDR Engineering, Coamerica, Lee & Associates, United Way, Greystar, North American Title Company, DeRito Partners and Miller Russell & Associates.

LPC is now under construction on a first-floor, 4,600 speculative office suite at the project, with estimated completion in late July. This, along with one additional 6,241-square-foot suite on the third floor, makes up the last available space at Biltmore Commerce Center. For additional leasing information or to discuss investment opportunities, please contact David Krumwiede or Amr Ceran at (602) 912-8888.

SCOTTSDALE, AZ – Bank 34 has leased 10,500 square feet of Class A office space at The Pinnacle in Kierland IV, a development of Furst Properties.

The location, 14850 N. Scottsdale Road, is the New Mexico-based bank’s fourth full-service banking center. Other branches are located in Peoria, Ariz., Alamogordo, N.M., and Las Cruces, N.M. The bank’s name reflects its founding date in 1934.

The six-story, 200,000-square-foot Pinnacle in Kierland IV, gateway to the Kierland area, is located in a part of North Scottsdale with a concentration of financial services. Morgan Stanley is an anchor tenant in the nearly fully leased building. Other top-quality tenants include New York Life Insurance, Old Republic Title Holding Company, BMO Harris Bank and the Clark Hill law firm.

“Pinnacle in Kierland IV’s space availability was one of those ‘timing is everything’ opportunities for us to establish our Arizona base of operations in a manner to support our longer term growth plans,” said William Kauper, President of Bank 34.

Jim Watkins, Craig Coppola, Andrew Cheney and Gregg Kafka of Lee & Associates represented Furst Properties. Tom Boyle of Lee & Associates represented Bank 34.

“The Pinnacle in Kierland IV is the crown jewel of office properties in North Scottsdale,” Cheney said. “At 10,500 square feet, Bank 34 will have a larger footprint than other banks which typically lease 3,000-5,000 square feet in the area.”

In total, Furst Properties owns seven Class A office buildings in North Scottsdale. The 702,000-square-foot portfolio includes six buildings in the Kierland area and the Pinnacle in Perimeter Center building along the northeastern curve of Loop 101, near the TPC Scottsdale championship golf courses.

“Bank 34’s presence in North Scottsdale continues to expand the increasing selection of financial services available in the Kierland area,” said Austin Furst, president of Furst Properties.

The following leases were reported to the Real Estate Daily News for the Phoenix Lease Report the week of March 9 thru 13, 2015.

INDUSTRIAL – 101 BUSINESS CENTER, PHOENIX, AZ.
ViaWest Group recently signed a 5-year lease renewal for approximately 18,000-square-feet with ITT Technical Institute at West 101 Business Center. The project, referred to as West 101 Business Center, is comprised of three Class-A office buildings totaling 118,853 SF and with this transaction and other recent activity the property is now 88% leased. Located just one block north of 95th Avenue and McDowell Road, West 101 Business Center is a conveniently positioned just minutes from the intersection of I-10 and Loop 101.

“ViaWest is excited to continue our long-term relationship with ITT. They have been a great tenant at the property and we look forward to working with them for many years to come,” said Danny Swancey, of the ViaWest Group. ITT Technical Institute has over 130 locations in 38 states across the U.S.  ITT currently has four campuses throughout Arizona serving thousands of students annually.

“ITT was pleased to continue their lease at the building. The great West Valley location combined with the top-notch facilities were two very important factors in ITT’s decision. These characteristics, along with the great relationship between ViaWest and ITT, made the process easy,” said Andrew Cheney at Lee & Associates. Tyler Smith at Colliers International is the leasing broker for West 101 Business Center and continues to market the remaining 14,000 SF of vacancy. Andrew Cheney of Lee & Associates represented the Tenant.

OFFICE – 17851 N. 85^th ST., SCOTTSDALE, AZ.
A Scottsdale air ambulance provider signed a multi-million dollar, 5-plus year office lease for 15,875-square-feet at The Pinnacle in Perimeter Center, 17851 N. 85th St. in Scottsdale. The transaction was signed on February 10. Lee & Associates principals Jim Watkins, Craig Coppola, Andrew Cheney and associate, Gregg Kafka negotiated on behalf of the owners, Lot 15 Office Development, LLC. Steve Cross of Cross CRE procured the tenant, Aviation West Charters LLC. The company is a premier global air ambulance provider specializing in long-range critical air medical transport. The Perimeter Center space will be the new location of the company’s administrative offices. The Pinnacle in Perimeter Center is a 3-story, class A office building and is situated along the Loop 101 and Union Hills Dr. in the Scottsdale Airpark submarket. The building was constructed in 2006. The property features prominent freeway signage, 360-degree panoramic views of surrounding mountain ranges and 5 per 1,000 parking. It is nearby abundant amenities with over 50 restaurants within 2 miles of the center. It is located near other prominent corporate neighbors such as Taser International, Pulte Homes, Fender Guitar and GE Franchise Finance.

RETAIL – 1232 E. SOUTHERN AVE., MESA, AZ.
A lease for 1,220-square-feet at Copper Bell Plaza on the NEC Southern Ave & Stapley Dr in Mesa, AZ to MetroPCS was recently consummated. The owner of the center is Southern & Stapley Partners, LLC. Jared Lively of Rein & Grossoehme represented the Tenant and the Landlord on this transaction.