Tempe’s first vertically integrated mixed-use development

PHOENIX, Arizona – Fenix Development, a Los Angeles-based real estate investment and development company, has broken ground on Phase I of The Watermark | Tempe at the north bank of Tempe Town Lake in Tempe, Arizona.

Phase I, of the 1.9 million-square-foot mixed-use development, will include 250,000-square- feet of premium Class A office space, 44,000-square-feet of high-end restaurant and boutique retail service space, and 360 luxury apartments. Future phases include a second 360,000 sf office tower, an additional 20,000 sf of restaurant and retail space, and a 170-room business-class hotel. Fenix Development is scheduled to deliver Phase I in the fall of 2018.

“After years of planning I am proud to announce that we have officially broken ground at The Watermark,” said David Norouzi, President of Fenix Development. “Given the site’s lake-frontage, easy access, abundant parking and proximity to the 202 Freeway we hope Watermark will become Tempe’s new gathering place.”

At build-out, Phase I will include two buildings. The first building, a 15-story building with premium Class A office space, starts on the eighth floor and extends to the penthouse on the 15th floor. The office space will sit on top of the seven floor parking structure and features full height floor-to-ceiling glass around the entire building. The street level will feature 18,250 sf of high-end restaurant and retail space that overlooks the Watermark plaza and splash pad water feature – the center and focal point of the property. The second building includes an additional seven level parking structure with an additional 25,565-square-feet of high-end restaurant and retail space with street level frontage along Watermark’s main driveway facing Scottsdale Road.

“This land has sat vacant and underutilized since the days of the Devil House and Club Rio,” according to Mike Loretz, Project Manager of Fenix Development. “The Watermark is a new chapter in the history of North Tempe. This project will be the valley’s preeminent live-work-play environment setting a new standard for Tempe.”

As Tempe’s first vertically integrated mixed-use development, the project was designed by Nelsen Partners, Design Workshop, Erickson and Meeks Engineering and PK Associates and is being built by Okland Construction. The office building was designed to begin on level eight to arrive in the Sky Lobby that houses tenant amenities such as the Sky Game Room, Sky Fitness Center, Sky Lounge, Sky Conference Center and Sky Terrace. “Floors nine through 15 will have approximately 31,000 sf of office capacity with the 15th floor penthouse featuring 360-degree unobstructed views,” said Mike Beall, Executive Managing Director of Cushman & Wakefield. “A 90-foot Skywalk, is another exciting component, which will connect the north parking structure to the eighth floor Sky Lobby and stands 80 feet above the ground floor retail and parking; no other project in Arizona has this feature.”

“This project is truly one-of-a-kind to the area. The attention to detail and design that Fenix has put into this project provides an opportunity to attract a level of quality restaurants and retailers Tempe has not yet seen,” says Brent Mallonee, Senior Director of Cushman & Wakefield.

“The Watermark is a truly great example of forward thinking and will set a new standard for a live-work environment in the Valley. This project will add to the already thriving center along Tempe Town Lake and in our downtown – we are proud to welcome The Watermark to Tempe,” said Tempe Mayor Mark Mitchell.

“Tempe’s Class A vacancy rate is among the lowest in the Greater Phoenix Metropolitan Area,” said Donna Kennedy, City of Tempe Economic Development Director. “The Watermark will give us the opportunity to serve the many tech companies, corporate offices and finance firms that want to bring jobs to Tempe.”

Cushman & Wakefield’s Mike Beall, Chris Walker, Sean Spellman and Jeff Wentworth serve as the exclusive office leasing agents and Brent Mallonee and Golden St. John have the retail leasing assignment for The Watermark | Tempe. For more information call 602-954-9000 or visit www.watermarktempe.com to view virtual tours, videos and renderings.

Cushman & Wakefield Represents Kieckhefer Properties in Lease of Office Space

PHOENIX, AZ – Cushman & Wakefield, a global leader in commercial real estate services, announced today that Cardinal Financial Company has leased 12,188 square feet at Chandler 202, 2525 W. Frye Road in Chandler, Arizona. The Cushman & Wakefield team of Mike Beall, Chris Walker, Sean Spellman and Jeff Wentworth represented the landlord, Kieckhefer Properties, during the lease transaction. Cushman & Wakefield’s Jay Hoselton and Chris Nord represented Cardinal Financial Company.

“Chandler 202 provided Cardinal the opportunity to relocate and expand into a brand new building with large, open and efficient space and a high parking ratio,” according to Mr. Spellman. “They loved the property’s convenient location close to two freeways, lots of amenities and easily accessible for their employees.”

Chandler 202 is a ±140,000 square foot, “Class A” office building located in the heart of the Price Road Corridor, just ¼ mile from Loop 101 and ½ mile from Loop 202 freeways. Completed in 2015, the three-story building features ±45,000 square foot floor plates, 11’ finished ceiling heights and 6.0/1,000 parking ratio. The building has a two-story atrium lobby and is serviced by two passenger elevators.

With the signing of Cardinal Financial Company, Chandler 202 is 72% occupied, with 39,762 square feet available for lease. For additional information on the project contact the Cushman & Wakefield team at 602.954.9000.

Phoenix – An affiliate of KBS Realty Advisors of Newport Beach, Calif. (Peter Bren, Charles Schreiber, Jr. co-founders) paid $85.1 million ($252.57 per foot) to purchase the Anchor Centre office complex located at the southeast corner of Camelback Road and 22nd Street in Phoenix.

The 336,939-square-foot project was acquired by KBSIII Anchor Centre LLC, a company formed by KBS Real Estate Investment Trust III Inc. The REIT is externally advised by KBS Capital Advisors, LLC, an affiliate of KBS Realty Advisors. The seller was AG/DWC Anchor Centre LLC, a joint venture formed by Angelo, Gordon & Co, LP in New York City, N.Y. (John Angelo, Michael Gordon, partners) and David Warren of DW Capitla Parners, LLC in Phoenix.

The deal was brokered through Chris Toci of Cushman & Wakefield of Arizona, Inc. in Phoenix, and Mike Beall and Chris Walker of Cassidy Turley in Phoenix.

Anchor Centre is comprised of a 6-story, 200,576-square-foot structure at 2201 E. Camelback Road and a 4-story, 136,363-square-foot building at 2231 E. Camelback Road. Maricopa County records show the buyer acquired the office property with a $53.2 million loan from U.S. Bank. The two-building project, which was built in 1984 and 1986, is 78 percent occupied. The leasing has been handled by Beall and Walker and the Cassidy Turley agents are expected to keep that assignment.

The purchase price is almost $100 more per foot than the seller paid for the property 3½ years ago.

KBS Realty is a long time investor in the Valley office market. Over the past 15 years, the company and its affiliates have bought and sold several hundred millions of dollars worth of office space in the Phoenix area. KBS Realty is interested in additional office investments in the Phoenix as well as other major employment growth markets in the U.S. Anchor Centre is the third Camelback Road office property that has sold in the past 18 months.

Advisors regional pres. is Rodney Richerson, call him at (949) 417-6500. The contact at Angelo, Gordon is Will Abbate, who can be reached at (310) 777-5445. Contact Warren at (602) 810-8494.

To read complete story go to BREW