Local Partners Plan Perimeter Center Building for Occupancy Summer 2019

Scottsdale, Arizona – A local partnership known as DBM Ventures has purchased 2.79 acres within Perimeter Center with plans to develop a $9.0 million office building in the upcoming year.

DBM Ventures, a partnership comprised of David E. Sellers and two other prominent commercial real estate development leaders, purchased the acreage at 8399 E. Hartford Dr. in Scottsdale in May. The partners plan to develop a two-story, 32,054-square-foot office building on the property that incorporates modern architectural design. Construction is slated to begin at the end of this year with occupancy scheduled for summer 2019.

“The timing is perfect for this project,” says Jim Keeley, SIOR, founding partner of the Scottsdale office of Colliers International in Greater Phoenix. “The site is situated in the heart of one of Arizona’s largest employment centers and is poised for successful development as vacancy tightens during our strong economy. Businesses are eagerly relocating and expanding here in Scottsdale, looking for new, high quality space.”

Keeley negotiated the land sale transaction and will serve as exclusive leasing/sales agent for the development project.

“During the early design stages, this project is available for build-to-suit customization. Additionally, the building is offered for lease and/or sale,” says Keeley.

LGE Design Build will be handling both architectural services, as well as general contracting for the project.

Located within the master planned Perimeter Center, the property is positioned in the dynamic Scottsdale Airpark submarket. The area contains more than 3,000 businesses employing more than 57,000 people. Several companies house their headquarters or regional headquarters in the area, including GoDaddy, YAM Worldwide, JDA Software, Carlise Company, Han Wei Lines, GPS Insight and CVS Caremark.

Scottsdale, Arizona – Marc Bonilla and Jim Keeley of Colliers International in Greater Phoenix have negotiated the $40.18 million sale of the Discount Tire Corporate Headquarters project located at 20225 N Scottsdale Rd.

The two-story Class “A” office project was developed by Opus West Corp. in 2002 through a structured build-to-suit agreement with Discount Tire Company’s founder, Bruce Halle.  Discount Tire has been leasing the building for 15 years and Halle decided to purchase the project. Halle Properties LLC in Scottsdale (Bruce Halle, principal) paid $40,180,000 to acquire the 157,566-square-foot office building located at the northeast corner of Scottsdale Road and Thompson Peak Parkway. The seller in the all-cash transaction was Tucson-based Holualoa Thompson Peak LLC.   In November of 2004, Holualoa purchased the property for $31.4 million.

The transaction was negotiated by Keeley and Bonilla of Colliers International in Scottsdale. The 5.854-acre, corporate headquarters site is located within the prestigious Grayhawk community. The corporate headquarters project is surrounded by approximately 10 acres of undeveloped land that is also owned by Halle.

“We were consulting with several high profile prospects circling the deal over the course of the last few years,” said Bonilla.   “Clearly, none of them was more qualified than Mr. Halle. The price Halle Properties paid for the asset is well below replacement cost. And the value of the asset is particularly enhanced by the adjoining 10 acres also held by Mr. Halle. This strategic acquisition now gives Discount Tire unfettered control of any such growth and expansion projections moving forward.”

Discount Tire Company and America’s Tire, is the world’s largest tire and wheel retailer with more than 900 stores in 31 states. Holualoa, over the last 20 years has become a dominant investor and developer in both Tucson and Phoenix.  Holualoa, is looking for additional value-add investment opportunities in the Southwestern U.S.

For more information Keeley and Bonilla can be reached at (480) 596-9000 or (602) 790-0716.

Colliers International Releases Annual Scottsdale Airpark 2030 Report

Phoenix, Arizona – Jim Keeley, SIOR, CCIM, founding partner of Colliers International’s Scottsdale office, released his annual Greater Scottsdale Airpark 2030 Report for the year ending December 2016.  Known as the 2030 Report, references the vision of what the Greater Scottsdale Airpark would like in the year 2030. The 2030 Report was first published in 1989 as the 2010 Report and provides a current and historical perspective on economic activity, growth and trends for the Greater Scottsdale Airpark (“Airpark”).

“This past year brought an overall fresh attitude to the Airpark that embraces innovation, live/work/play and the transition to a millennial workforce,” said Keeley.  “The newly built ‘Sneaky Big Studios’ and the influx of technology companies are creating a dynamic, new energy to the area.”

One of the biggest changes in the Airpark was the city’s agreement to tear down the current airport terminal and renovate with two new hangars and an updated terminal.  “This modernization of facilities will insure that the Scottsdale Airpark will remain a destination of choice for private and corporate aviation,” said Keeley.

The recession cycle allowed the City of Scottsdale time to implement other new transportation decisions, including roundabouts on Hayden Road and Raintree Road.  These improvements will also solidify the future of the Airpark as a thriving business hub.

“This real estate cycle is quite different from those of the past 50 years,” said Keeley.  “We have far less vacant space because of job growth, which has driven up the price of buildings.  For the first time in Arizona’s economic history, this growth in employment was not driven by residential construction.” According to the Colliers International report, residential construction is expected to improve over the next several years, which will increase commercial and industrial property values even more.

“We have experienced very little construction in the past seven years and our inventory has been absorbed by schools, insurance companies, financial institutions, churches and other users.  Significant absorption and low vacancy has driven up rental rates, which we anticipate continuing.”

The Airpark posted a year-end 2016 vacancy rate of just 10.3%, the lowest since 2006.  Approximately 3,075 companies operate in the area, employing more than 56,000 people.

Approximately 38% of the commercial space in the Airpark is office buildings and another 27% is industrial/flex facilities.

“The Airpark continues to attract leading companies, either with their headquarters or subsidiaries,” said Keeley.  “It has been reported that eight billionaires operate in the Greater Scottsdale Airpark.”

A number of sizable transactions took place in or near the Airpark during 2016.  Optima Kierland, a 12-story, 220-unit residential project is actively under development.  The 202-unit Sunset Commons apartment community is underway and residents will take occupancy in 2017.  Additionally, Bahia Drive will be the future home of an exciting three-story live/work condo community called Soho.  On the retail side, Potato Barn opened its new furniture showroom on the Loop 101 freeway.  The office market received some very noteworthy deals in 2016.  Scottsdale Quarter opened its new six-story office building and is expected to lease up quickly with the highest rents in the Airpark.  YAM Holdings moved into a new 60,000-square-foot modern headquarters building.  Van Trust Real Estate relocated its corporate headquarters from Phoenix to the Greater Airpark Perimeter Center.

According to the Colliers report, the Airpark can look forward to an exciting 2017.  The Live/Work/Play evolution will come alive with more than 800 new apartment and condo owners taking up residence in the area.  A group of Airpark stakeholders are looking to “brand” the Airpark employment base and the area is expected to attract more aerospace, defense and technology focused companies.

For more details, access the full Greater Scottsdale Airpark 2030 Report by clicking HERE.