Tempe Development Thread

[plinko]

^I think the argument he is making is that you lose some efficiency in the power generation just based on the amount of available square footage. Obviously a big plant in the middle of the desert wouldn't have this problem.

Still, I tend to fall on the side of SunDevil in that the university saves a little money and gets the PR and student learning values of being a solar campus.

Andrew, wouldn't the land cost alone of a large section of desert make the rural solar plant idea for ASU infeasible? (Though I do recognize the obvious in that a large rural solar plant could power ALOT more than just ASU, but it would likely require federal dollars and years of political BS to get started). I'm sure somebody has thought of it.

The building roofs are free real estate for the solar companies and free equipment and installation for the university. A win-win.

[Tempe_Duck]

So a while back I asked about the construction on the Southwest corner of Mill Ave and Broadway Rd. Some one mentioned something about condos. Well just thought I would correct that, there is now a sign for a Walgreen. Which is weird because there is one across the street, so I guess they are just moving. Wonder what is going into their current place.

[Azndragon837]

Originally Posted by tempedude

Gee thanks you are the first person to say that to me as long as I have been on here.

Andrew I think you ment to address and ask urevnet(Ryan) your question.

Oops, sorry....my mind was wandering. But hi anyways!

-Andrew

[tempedude]

^Hey

It's all good.

[ciweiss]

28 commentsby Andrew Johnson - Jun. 16, 2008 05:18 PM
The Arizona Republic
Light rail is six months from operation, but the transit system's impact on the Valley's real-estate market has been in full swing with new condos, office buildings and mixed-use developments rising throughout metro Phoenix.

Transit officials estimate that since 2004, developers have spent close to $6 billion on public and private projects on and around the future light-rail line. Critics, however, say the transit system has put a burden on taxpayers and construction of the line has shut down businesses.

The figure is based on information Metro light rail routinely gathers from planners in Phoenix, Tempe and Mesa, the three cities in which the 20-mile system will operate beginning in December.
The price tag includes projects already completed, developments under construction and announced projects within a half-mile radius of the line that officials from those cities say will likely come to fruition, according to Ben Limmer, a Metro light rail planner.

Light rail is not the sole reason why projects in the transit system's vicinity have developed, real-estate analysts note.

But the future system has definitely been a catalyst prompting developers to pay higher prices for property adjacent to the line for condominiums, office buildings and retail centers.

Economic factors, including soaring fuel prices, have caused developers like Eugene Marchese to focus attention on transit-oriented projects.

Marchese's San Diego-based company, Constellation Property Group, bought about 2 acres near Sun Devil Stadium in Tempe on which it intends to develop Stadium Tower.

Current plans for the project, which Marchese expects to break ground on in early 2009, include a 20-story residential building, a 17-story hotel and retail space.

As gas becomes more expensive and drive times grow longer, public transit becomes more attractive, said Marchese, who added that's whydevelopments built with commuters in mind fare well.

"What we find is there's a higher demand for the product because of the location (near light rail)," he said.

Developers also expect the arrival of light rail to deliver a boost to property values in certain areas surrounding the line - a phenomenon that has happened in other cities that have built their own systems.

In metro Dallas, median values between 1997 and 2001 increased nearly 25 percent for office buildings and about 32 percent for residential properties near light-rail stations, according to a University of North Texas study.

That compares to an 11.5 percent increase for comparable office buildings and a 19.5 percent hike for residential properties not located near light-rail stations.

"

Phoenix-based Equus Development Corp. currently is putting the finishing touches on Century Plaza, a 15-story office tower in midtown Phoenix it has converted into a 17-story condo building.

Equus bought the building at the southeast corner of Central and Lexington avenues in December 2004. The property's location just south of a future light-rail station was one factor that enticed the company to develop there.

"We were very specific to select right around a light-rail station," said Douglas Edgelow, president of Equus.

Equus also is drafting plans to build four new high-rise towers that could include a five-star hotel, office space and more residential units.

The condo project has seen a significant amount of leasing activity. The company has received down payments on about 80 percent of Century Plaza's 145 units, which are currently priced from about $370,000 for a one-bedroom unit to $2.5 million for a two-floor penthouse, according to Michael Webb, a sales representative for Equus Realty LLC.

Webb and Edgelow say the project's location on the light-rail line, which cuts down Central Avenue to downtown Phoenix, has helped spur demand, along with proximity to office buildings and downtown's entertainment venues.

Commercial real-estate brokers say light rail also has become an attractive selling point for non-residential projects.

Marcus Muirhead, an associate vice president in Colliers International's Phoenix office, said the transit system has even helped spur interest in older office properties that are within a stone's throw of the line.

There is "strong interest" among investors for Class B and C office properties, older buildings that do not include the latest amenities and need improvement, that are located within a few blocks of Central Avenue, Muirhead said.

Muirhead and his colleague, Charlotte Christian, say they expect to see properties within a half-mile of the line to get a boost in value down the road.

"It has created demand and I think it will create more price increases when the rail is in operation," said Christian, a senior vice president with Colliers International who specializes in mixed-use projects.

Christian represented Marchese, the San Diego developer, in his purchase of land for his proposed Stadium Tower project. Marchese said he paid $6.5 million for the approximately 2 acres about two years ago.

As the Valley's office market struggles to retain and attract tenants during the economic downtown, light-rail proximity also could be an effective marketing point for landlords trying to lease space.

Mindy Korth, an executive vice president with CB Richard Ellis Inc. in Phoenix, recently highlighted the presence of light rail in a marketing package for Meridian Tower, a 21-story office building at 3550 N. Central Ave. she is marketing on behalf of its owner.

Light rail also could benefit retail centers, which have taken a hit because of the general downturn in the economy.

Mike James, deputy transportation director for Mesa, pointed to the Tri-City Pavilions at the end of the current light-rail line.

The neighborhood retail center, which is anchored by a Safeway, could fare well from people who don't want to drive to do their shopping, said Greg Greenstein, president of JG Management Inc. The Westlake Village, Calif.-based real-estate investment firm bought the center in 2006.

"Our feeling is that (its location) will add trips to the shopping center because of the adjacent park and ride station," said President Greg Greenstein.

[Don B.]

^ Good article and good stuff.

--don

[azsunsurfer]

There is a new project proposed by Irgens Development Partners wonder where the hell this is suppose to go?!? As quoted in the publication:

"979 Playa del Norte (Tempe) will be a 100,000 SF, Class A office building located just southeast of the Loop 202 and Scottsdale Rd interchange and adjacent to Tempe Town Lake. Groundbreaking is slated for 2009."

The image is kinda small to scan but it looks cool, 4 stories of office over a 4 story parking garage? This just came out of nowhere and Im not sure where they are planning to build this since ALOFT is almost topped out and ONYX is suppose to break ground soon.

[azsunsurfer]

Here is a story I found about it, still not sure where in that site it's going?

http://phoenix.bizjournals.com/phoenix/stories/2008/04/21/daily60.html?ana=from_loop

[HX_Guy]

I hope it's more grand then just an 8 story building with the way the VP of Irgens is describing this thing...

"Upon completion, this development will be one of the most prominent buildings on the Loop 202 freeway and will be a landmark to the Tempe Town Lake area," said Mike O'Connor, senior vice president of Irgens."

[loftlovr]

^ I know right!?
I love the way these developers puff...
"The most luxurious destination yet to be witnessed in the Southwest; it will blow your mind".

Well, yeah, but its also an 8 story Commercial building.

[soleri]

I stopped by Centerpoint's condo sales' center this morning. The 22 story tower is 30% sold and sales haven't begun for the 30 story tower. Indeed, the public report has yet to be issued for it! How was a project funded without sufficient pre-sales? A "sympathetic lender". Price points are from the mid 300s for a studio to several million, averaging over $500/sf. HOA fees will run around 50c/sf.

Other projects in Tempe are stalled until the market turns around. Of course, no one really knows how long the downturn will last. More importantly, Centerpoint's sales will be the barometer by which other developers gauge the market for high-rise condos. And if the market doesn't turn around soon? Avenue Communities, the developer, will be stressed to either somehow divest its Tempe project or face bankruptcy.

This kind of story is as old as Arizona and it's boom-and-bust cycles. I'm a native, however, and I've never seen it this bad. The one silver lining is that there will be some enticing bargains for the bottom feeders among us.

[tempedude]

^Good to see you Soleri. Interesting to hear that condos in the 30 story tower haven't gone up for sale yet.

Originally Posted by azsunsurfer

There is a new project proposed by Irgens Development Partners wonder where the hell this is suppose to go?!? As quoted in the publication:

"979 Playa del Norte (Tempe) will be a 100,000 SF, Class A office building located just southeast of the Loop 202 and Scottsdale Rd interchange and adjacent to Tempe Town Lake. Groundbreaking is slated for 2009."

The image is kinda small to scan but it looks cool, 4 stories of office over a 4 story parking garage? This just came out of nowhere and Im not sure where they are planning to build this since ALOFT is almost topped out and ONYX is suppose to break ground soon.

I believe there is some vacant property just due east of the Aloft hotel site, and fronts on Playa del Norte Drive, not directly on the lakefront as the article sort of implies.

[loftlovr]

Thanks for posting that info Soleri.
It sure will be interesting to see the way Centerpoint unfolds....

[andrewkfromaz]

Originally Posted by plinko

^I think the argument he is making is that you lose some efficiency in the power generation just based on the amount of available square footage. Obviously a big plant in the middle of the desert wouldn't have this problem.

Still, I tend to fall on the side of SunDevil in that the university saves a little money and gets the PR and student learning values of being a solar campus.

Andrew, wouldn't the land cost alone of a large section of desert make the rural solar plant idea for ASU infeasible? (Though I do recognize the obvious in that a large rural solar plant could power ALOT more than just ASU, but it would likely require federal dollars and years of political BS to get started). I'm sure somebody has thought of it.

The building roofs are free real estate for the solar companies and free equipment and installation for the university. A win-win.

The point I was trying to make is that the University is never going to be a great producer of power - even carbon neutrality, a relatively modest goal, can only be attained by offsetting and efficiency increases.

I think it's great that ASU is doing this, but I wonder if, in the long run, people won't recognize that it's more efficient for ASU to just buy solar energy from a huge APS plant out in the middle of nowhere. This would be essentially the same as today's power distribution system, only using green energy sources. This article talks about the APS plant outside Gila Bend - this system will be far more efficient and cost-effective compared with any rooftop system.

Obviously ASU loses part of the "green cred" by just buying power off the grid, but someday these decisions will be made logically, rather than for the PR/marketing people.

[loftlovr]

http://www.bizjournals.com/phoenix/stories/2008/06/23/daily60.html?f=et73&ana=e_du

Friday, June 27, 2008 - 12:23 PM MST
Hayden Ferry Lakeside Tower II sold for $93M

Phoenix Business Journal - by Yvonne Zusel Phoenix Business Journal

SunCor Development Co. has sold a commercial office tower in its Hayden Ferry Lakeside Bridge to Bridge development in Tempe to a subsidiary of Sumitomo Corp. of America for $93 million.

The 12-story, 299,540-square-foot Hayden Ferry Lakeside's Tower II, sits on the south shore of Tempe Town Lake and is the second commercial office building sold since the development broke ground in 1999.

The building is 83 percent leased, with KPMG, MetLife and Fidelity National Title Insurance among the tenants.

HF Lakeside II LLC is the subsidiary of New York-based Sumitomo, a trading and investment firm.

Randy Levin, vice president of commercial/urban development and design for SunCor, said the deal with Sumitomo is ideal.

"They're a fabulous company," he said. "They care about quality and they're bullish on Phoenix."

He said the fact that it was a cash deal also helped in a market where the credit crunch can be "nerve-wracking from a seller's perspective."

The Hayden Ferry Lakeside Bridge to Bridge development also includes another commercial office tower, purchased by Arden Realty Inc. in 2005; two luxury condominium towers; a 10-level parking structure; and a three-story mixed-use loft office building.

There are plans for more commercial and residential structures, including 11 towers to be built between the Mill Avenue bridge and the Rural Road bridge.

For more: www.haydenferrylakeside.com.

[ciweiss]

^^^^^
The AZCentral article also mentioned this:

Hayden Ferry Lakeside currently has another eight-story office building, which serves as SunCor's headquarters, and two condo buildings that SunCor developed. Late this year, the company also plans to start building a third office building.

[flyer84]

Yes, the third and last office building at HFL will be 10 stories and it will be closest to the intersection of Rio Salado and Mill. I think once this office building is built it will give a lot more density to the corner. Still a bit disappointing that the development isn't very streetfront oriented but i do like how the buildings are designed to resemble ships. It looks really nice next to Tempe Town Lake. Here is the siteplan once again for those who haven't seen it. I've circled the third office building that is not yet built.

[ciweiss]

^^^
Flyer84 thanks for posting that. I think you are correct that once that building goes in it will make that whole corner look a lot better than an empty lot and the garage. If any of you get a chance you should go back there and take a look. The north side of the garage has potential for offices/shops and the 3rd building should fill things in pretty nice. I am curious what it will actually look like from the street view (eg Mill).

I wish the South side (Rio Salado side) would have done something more like the city hall parking structure shown below. I think that is the best looking parking structure I have ever seen. I wish more parking structures took that kind of design. They don't all have to look like concrete eye sores.


http://www.tempe.gov/business/Developmen...Progress/parking%20structure%20panel.pdf

On a side note they are going to town on the South Bank project. They even took out part of Rio Salado constructing it. I also see some activity over at the Onyx. I hope sales go well for them. I am a bit surprised they appear to be going for it as bad as other projects sales are going. Perhaps they see a turn in the market.

[tempedude]

I look at Hayden Ferry Lakeside everyday.....I dont care if they build a 1000ft tower there...blech...don't like it sorry...Mill Ave..isn't anything great either..what a one street drag...for what 7 blocks whoopee!!!!

[Tempe_Duck]

Originally Posted by ciweiss

I wish the South side (Rio Salado side) would have done something more like the city hall parking structure shown below. I think that is the best looking parking structure I have ever seen. I wish more parking structures took that kind of design. They don't all have to look like concrete eye sores.


http://www.tempe.gov/business/Developmen...Progress/parking%20structure%20panel.pdf

Where is that parking structure going and when will it be built?