Tempe Development Thread

[plinko]

There are so few of those flatiron lots anywhere in the Valley. Why in the hell wouldn't they complete the corner, even if it's just a balcony or projection? Why stop short?

To me the project is just fine, student ghetto or not, but to not capture the corner is a total failure of the designer (or developer, you never know the real story) to recognize how unique those units could be.

[ASUSunDevil]

5.3 Acre “Argo at Town Lake” Project Sells for $13.5m, Purchased in 2011 for $4.6m

Vizzda – May 20, 2013 – Evergreen Development sold a 5.3 acre parcel of land immediately south of the Tempe Center for the Arts for $13.5m or $58.19 per ft2 to Lennar Multifamily- a newly formed division of Lennar Corporation. Lennar secured a $37.5m construction deed of trust with California Bank and Trust. Andrew Skipper co-founder of Evergreen and Erik R Higgens vice president of Lennar Multifamily Investors closed the deal.

The subject property is 5.3258 acres or 231,991 ft2 of commercial acreage zoned MU-4 or “Mixed Use High Density” per December 21, 2012 final-plat. Evergreen entitled the site for 328 mutlifamily units- to be known as “Argo at Town Lake”.

Plans call for a single six-story structure of 604K ft2. The top four floors will feature 319 apartments including 32 studio, 135 one-bedroom, 136 two-bedroom and 16 three-bedroom apartments. The remaining 9 units of multifamily are live/work spaces clustered at the south side of the building with a ground floor business space connected by private stairwell to a residence above; these work spaces total 1,909 ft2 of retail/office. The site plan includes a 738 ft2 coffee shop and “truck court” area with room for four mobile food truck restaurants and an outdoor seating area which will cater to pedestrian traffic at times when the Tempe Center for the Arts hosts events.

The bulk of this site was originally acquired by Zacher Development, on January 19, 2007 as a 5.06 acre assemblage for $17,401,289 and financed by a $20.0m loan from Mortgages Limited and a $1.39m loan from Metropolitan Land Company. The property was noticed for trustee sale on May 8, 2008 and reverted to the Mortgages Limited recovery fund (ML Manager) at trustee sale on December 4, 2009 for a credit bid of $3.5m.

The property was sold to Evergreen on June 13, 2011 for $4.6m or $20.86 per ft2; with $2.1m down and $2.5m debt with National Bank of Arizona. Cricket Communications signed a 5 year lease (with extensions) on January 24 of this year to operate a cellular tower on the site – a mobile tower is on the site and a permanent tower is under construction.

[Arquitect]

Originally Posted by ASUSunDevil

5.3 Acre “Argo at Town Lake” Project Sells for $13.5m, Purchased in 2011 for $4.6m

Vizzda – May 20, 2013 – Evergreen Development sold a 5.3 acre parcel of land immediately south of the Tempe Center for the Arts for $13.5m or $58.19 per ft2 to Lennar Multifamily- a newly formed division of Lennar Corporation. Lennar secured a $37.5m construction deed of trust with California Bank and Trust. Andrew Skipper co-founder of Evergreen and Erik R Higgens vice president of Lennar Multifamily Investors closed the deal.

The subject property is 5.3258 acres or 231,991 ft2 of commercial acreage zoned MU-4 or “Mixed Use High Density” per December 21, 2012 final-plat. Evergreen entitled the site for 328 mutlifamily units- to be known as “Argo at Town Lake”.

Plans call for a single six-story structure of 604K ft2. The top four floors will feature 319 apartments including 32 studio, 135 one-bedroom, 136 two-bedroom and 16 three-bedroom apartments. The remaining 9 units of multifamily are live/work spaces clustered at the south side of the building with a ground floor business space connected by private stairwell to a residence above; these work spaces total 1,909 ft2 of retail/office. The site plan includes a 738 ft2 coffee shop and “truck court” area with room for four mobile food truck restaurants and an outdoor seating area which will cater to pedestrian traffic at times when the Tempe Center for the Arts hosts events.

The bulk of this site was originally acquired by Zacher Development, on January 19, 2007 as a 5.06 acre assemblage for $17,401,289 and financed by a $20.0m loan from Mortgages Limited and a $1.39m loan from Metropolitan Land Company. The property was noticed for trustee sale on May 8, 2008 and reverted to the Mortgages Limited recovery fund (ML Manager) at trustee sale on December 4, 2009 for a credit bid of $3.5m.

The property was sold to Evergreen on June 13, 2011 for $4.6m or $20.86 per ft2; with $2.1m down and $2.5m debt with National Bank of Arizona. Cricket Communications signed a 5 year lease (with extensions) on January 24 of this year to operate a cellular tower on the site – a mobile tower is on the site and a permanent tower is under construction.

Always a shame to see speculation like this going on, yet it is so rampant in the Phoenix area that I have grown accustomed to it.

Looks like we will have a dirt lot for quite a while, but hey, at least we will have one of those awesome cell towers!!!

[combusean]

^ Not necessarily ... Lennar is an actual builder. They're very active in the Bay putting up real, dense, new urbanist, multifamily developments.

This is good news.

[alexico]

Originally Posted by ApacheRedevelopment

[IMG]https://sphotos-a.xx.fbcdn.net/hphotos-frc3/97

220 unit student apartment project to be located at 1010 E Lemon Street. This project will include ground floor retail.

Apache Redevelopment[/url]

ah lemon street. i had a 1 bdrm there when I was 19. my first appt.

[Jjs5056]

Does The Argo sale mean a new project/plan would be required? Can anyone get some recon going to see if there's any chance of Argo being developed? I had such respect for that development- seemed so well thought out and was a perfect fit for the area, which is in desperate need of some life.

Meanwhile, Apache continues to suck away any and all residential development away from the core. This latest one is, what, #10? And we have yet to see a single project downtown since W6 was rescued and completed.

Unfortunately, this resdiential development is almost all student housing. We need more Gacie's and Grigio's or we are going to have a dead corridor with a glut of empty retail that will never get filled- what business will open along a corridor that's only alive a portion of the year? Yikes.

[nickw252]

Metro Phoenix’s booming multifamily market has apparently wooed a publicly traded home builder in Miami into the business.

The Business Real Estate Weekly of Arizona reported today that Lennar Multifamily Investors LLC — a newly-formed subsidiary of Lennar Corp. (NYSE: LEN) — recently paid $13.5 million for a 5.3-acre lot along Tempe Town Lake where it plans to immediately start building a 328-unit apartment project.

The parcel is located on the south side of the lake and west of Mill Avenue, adjacent to Tempe Beach Park.

BREW said the project is Lennar Multifamily’s first endeavor in the apartment building sector.

It also marks the second apartment project currently in the works for Tempe Town Lake. The second is being built on the east side of Mill Ave. next to Hayden Ferry Lakeside by San Diego-based OliverMcMillian, which scooped up the 3.7-acre site last month for $5.8 million.

Blueprints for the Lennar Multifamily project call for units ranging from 630 to 1,800 square feet that will run from $1,000 to $3,000 in monthly rent, BREW said.

The complex — dubbed Argo at Town Lake — is a joint-venture partnership with The Resmark Cos. in Los Angeles. The construction timeline is an estimated 21 months and Jeffrey Stone’s Summit dck — formerly Summit Builders Construction Co. before being acquired by Pittsburgh-based Dck Worldwide LLC back in July — is serving as the general contractor, BREW said.

http://www.bizjournals.com/phoenix/news/2013/05/22/tempe-town-lake-apartment-complex.html

[Jjs5056]

Great news, thanks for posting.

[Arquitect]

Originally Posted by Jjs5056

Does The Argo sale mean a new project/plan would be required? Can anyone get some recon going to see if there's any chance of Argo being developed? I had such respect for that development- seemed so well thought out and was a perfect fit for the area, which is in desperate need of some life.

Meanwhile, Apache continues to suck away any and all residential development away from the core. This latest one is, what, #10? And we have yet to see a single project downtown since W6 was rescued and completed.

Unfortunately, this resdiential development is almost all student housing. We need more Gacie's and Grigio's or we are going to have a dead corridor with a glut of empty retail that will never get filled- what business will open along a corridor that's only alive a portion of the year? Yikes.

I don't really see the reason for the development of Apache as a negative. In fact, I am quite excited to see how much stuff is going up in the area. And there is even more stuff coming up in the pipe-works. It isn't necessarily sucking away development from downtown. Projects such as the Hub and the Marriott are pretty good additions to the area (aesthetics aside). With many projects also being proposed for this area. We really shouldn't think about these areas as competing against each other, but rather as complementing each other. After all, they are both closely linked by transit, and are both targeted by the city to become dense mixed-use urban areas.

As for the argument about student housing, we are in Tempe. Yes, it would be nice to see other non-student housing projects being proposed. But we are next to the largest university campus in the US (which is planning to expand its enrollment to close to 100,000 students). The largest demand in the area is student housing, and that is what the market is providing. And as I have mentioned before, student housing projects are not only for students, they are just marketed and targeted towards students. Anyone can live in these places.

[ASUSunDevil]

Drove by Argo this morning - construction signs are posted back up and tractors are moving dirt around

[MegaBass]

Originally Posted by ASUSunDevil

Drove by Argo this morning - construction signs are posted back up and tractors are moving dirt around

Also noticed at Lot 59 North part of it has been taped off with some work being done.

[TempeSilverFox]

Great news! I know we have talked about this already- but now it is confirmed! State Farm is for sure going to build a HUGE office/ retail complex on the south shore of Tempe Town Lake! Amenities will include retail, restaurants, coffee shops and fitness facilities! There will also be quite a large area of public space. Check out the news post from the City of Tempe and the link here:

http://www.tempe.gov/index.aspx?page=31&recordid=1519


Tempe lands two million square foot multi-use office development
Posted Date: 5/24/2013
Contact: Nikki Ripley, City of Tempe, 480-350-8846


State Farm® To Be Major Tenant in $600 Million Office Complex

TEMPE, Ariz. (May 24, 2013) – The City of Tempe announced today that Ryan Companies US, Inc. and Sunbelt Holdings will develop a site owned by ASU adjacent to Tempe Town Lake, subject to City Council approval of development agreement details in the coming month. State Farm will lease office space and anchor the multi-use development.

The Marina Heights project in Tempe will be the largest office development deal in Arizona history, with more than 2 million square feet to be constructed on more than 20 acres. Construction costs are estimated at $600 million. Additionally, 40,000 to 60,000 square feet of retail amenities will complement the transit-oriented development, including food service, coffee shops, restaurants, business services, and fitness facilities. The site will also feature an approximately 10-acre lakeside plaza, which will be open to the public.

“This is a proud day for Tempe and everyone involved. We are tremendously excited about what the addition of State Farm will mean to our community over the decades to come,” said Tempe Mayor Mark Mitchell. “These employees, buildings, and amenities will further contribute to and showcase the vibrancy of Tempe Town Lake, Mill Avenue, and Arizona State University, and serve as a catalyst for more high-quality development.”

"We are thrilled that State Farm will be expanding in Arizona," said Governor Jan Brewer. "The jobs that will be created to make this project a reality will be a tremendous boon to our economy. This is a great example of how our plan to build an Arizona that is attractive to high value employers is hitting the mark."

The five-building campus will be leased by State Farm and become a hub to include a combination of new hires and existing employees who will provide claims, service, and sales support to State Farm customers.

“State Farm selected Tempe because it has a growing population with skill sets that match our customers’ needs,” said Mary Crego, Senior Vice President, State Farm. “The site along Tempe Town Lake gives our employees access to nearby amenities as well as easy connections to public transportation.”

"We look forward to having State Farm as a neighbor and to working with the company on a variety of programs including employee recruitment and academic programs for their staff," said ASU President Michael M. Crow. "State Farm's decision to lease the land owned by the university immediately adjacent to the ASU Athletic Facilities District is the first major step in the campaign to fund new and renovated sports facilities for the university. The Athletic Facilities District will be home to an exciting mixed-use development reflecting high quality and the best practices of sustainability. A high stature tenant such as State Farm will add to the luster of the district and validates its attractiveness."

The project is being developed by Ryan Companies US, Inc. and Sunbelt Holdings. Tempe-based architectural firm DAVIS designed the project.

About State Farm
State Farm and its affiliates are the largest provider of car insurance in the U.S. and is a leading insurer in Canada. In addition to providing auto insurance quotes, their 17,800 agents and more than 65,000 employees serve 81 million policies and accounts – more than 79 million auto, home, life and health policies in the United States and Canada, and nearly 2 million bank accounts. Commercial auto insurance, along with coverage for renters, business owners, boats and motorcycles, is also available. State Farm Mutual Automobile Insurance Company is the parent of the State Farm family of companies. State Farm is ranked No. 44 on the Fortune 500 list of largest companies. For more information, please visit www.statefarm.com or in Canada www.statefarm.ca.

About Arizona State University
Arizona State University is a New American University - a major public educational institution, a premier research center and a leader in innovation. Our vision is described by our three core principles: excellence in scholarship, access to education and impact in our global community. As a New American University, ASU is intellectually vibrant, socially conscious and globally engaged. For more information, please visit www.asu.edu.

About Sunbelt Holdings
Sunbelt Holdings has been a recognized leader in real estate development, management and investment throughout the Southwest since 1979. Over the years, the firm has gained an understanding of the area’s unique characteristics that only time and experience can teach. Sunbelt entered the local market more than 30 years ago with a strong presence in commercial development and asset management. Early projects like the Phoenix Gateway Center remain successful icons. Recent acquisitions of turn-around assets have provided unique opportunities to add value in the ‘class A’ office market with the Hayden Ferry Lakeside project in Tempe, and the PV|303 industrial project in the West Valley. Sunbelt also developed some of the Valley’s most beloved residential communities including McDowell Mountain Ranch in Scottsdale, Power Ranch in the East Valley and Vistancia in the Northwest Valley. In all, Sunbelt has developed over 50,000 acres of land over the past 30 years. For more information, please visit www.sunbeltholdings.com.

About Ryan Companies US, Inc.
Ryan Companies US, Inc. is a 3rd generation, family-owned national developer, designer, capital investment consultant, builder, and real estate manager specializing in fully integrated solutions for more than 75 years. Key Ryan market sectors include: office, retail, distribution, mission critical, public, and health care; and additional product experience includes work on mixed use, hospitality and multi-family housing. Ryan serves customers throughout the United States having completed over 170 projects in the past 5 years. Ryan has offices throughout the country in the NorthCentral, Midwest, Great Lakes, SouthEast, SouthCentral, and SouthWest regions. Ryan’s SouthWest Region has developed over 20 million square feet since opening its Phoenix office in 1994. For more information, please visit www.ryancompanies.com.

Additional Contacts:
Robert Villegas, State Farm, 480-293-6018
Virgil Renzulli, ASU, 480-965-8526
Heidi Kimball, Sunbelt Holdings, 480-609-2304
Sara Dial, Ryan Companies US, Inc., 480-205-6034

[Spitfiredude]

This is very exciting for Tempe & Phoenix. This project is the tipping point for development in Tempe. I believe, we will now see more multi-use housing across the lake and Downtown Tempe. I also think this will spur the streetcar along Rio Salado.

I wish we could get some more details though! I looked up all sites and none have details on what the buildings will look like. They said 5 different buildings, so I assume they will range in size of 10-20 stories. I hope this will further development of Hayden Harbor and Southbank.

The Argo site is in fact moving dirt. I can see it from my apartment. Good to see.


***UPDATE***:

I don't know if it is a credible source, but I commented on the COT Facebook page, and they told me that construction will start this summer and conclude in 2017. So I'm assuming its a multi-phased project.

[Jjs5056]

Originally Posted by Arquitect

I don't really see the reason for the development of Apache as a negative. In fact, I am quite excited to see how much stuff is going up in the area. And there is even more stuff coming up in the pipe-works. It isn't necessarily sucking away development from downtown. Projects such as the Hub and the Marriott are pretty good additions to the area (aesthetics aside). With many projects also being proposed for this area. We really shouldn't think about these areas as competing against each other, but rather as complementing each other. After all, they are both closely linked by transit, and are both targeted by the city to become dense mixed-use urban areas.

As for the argument about student housing, we are in Tempe. Yes, it would be nice to see other non-student housing projects being proposed. But we are next to the largest university campus in the US (which is planning to expand its enrollment to close to 100,000 students). The largest demand in the area is student housing, and that is what the market is providing. And as I have mentioned before, student housing projects are not only for students, they are just marketed and targeted towards students. Anyone can live in these places.

Everything you say is true. I am not at all opposed to the development along Apache- it's great to see urbanity spread along the LRT. I just lament the fact that this area has seen such a huge concentration of the residential development, as downtown will be where Tempe diversifies its economy and there has just been so little action there or along the lake. I think Apache needs more Gracie's and Grigio's as opposed to the Vues of the corridor... Almost every project includes ground retail and I just don't see that being successful if the demographcs don't shift just a bit, and I would really like to see it be a nice, diverse walkable area with ethnic food stores, thrift shops, amenity-type stores and so on.

Also, yes, others can live in these student oriented housing projects, but most turn into the Vue aka glorified dorms. That's great we are developing student housing that is urban, but Tempe has always had the potential to diversify and bring in other demographics and has plans for putting infrastructure to support that employment and resident growth beyond just ASU.

Where will State Farm employees live? The Hub? Of course, the hope is this news spurs some projects, but my point is there are very few options currently for professionals who desire an urban lifestyle and that's a shame for what is currently the leader for urban values in the state.

[Jjs5056]

Great that the Marina Heights movement was the real deal (State Farm project); interested to see what is actually built in Phase I and what this lakeside plaza entails.

Also, I hope the recent SouthBank movement is real, too, to provide some nearby housing along with the Lofts at Hayden Ferry.

Too bad an apartment+hotel highrise couldn't make its way into the development. Seems like the first location: lake, downtown, asu, jobs, streetcar, etc.

[Jjs5056]

Great that the Marina Heights movement was the real deal (State Farm project); interested to see what is actually built in Phase I and what this lakeside plaza entails. Happy to hear restaurant and retail uses will be involved; original articles mentioned office only and I was nervous it would be a literal office campus.

Also, I hope the recent SouthBank movement is real, too, to provide some nearby housing along with the Lofts at Hayden Ferry.

Too bad an apartment+hotel highrise couldn't make its way into the development. Seems like the first location: lake, downtown, asu, jobs, streetcar, etc.

[phxSUNSfan]

A Republic article gives a little more detail on the Marina Heights project. Here are some of the highlights:

The $600 million Marina Heights project, which will be anchored by an 18-story local State Farm insurance company headquarters, is being touted as the state’s largest office development and the catalyst that will help transform the lakefront into the hot spot for upscale offices and condominium projects originally envisioned...

State Farm expects to move much of its Valley workforce into Marina Heights in 2017. The insurance giant has 2,100 employees at four local offices with immediate plans to hire another 900 workers...

The project is expected to boost ASU’s efforts for development in its adjacent Athletics Facilities District...

Marina Heights will include five buildings of four to 18 stories with two levels of underground parking, she said...

http://www.azcentral.com/community/tempe...ces-million-office-development-deal.html

[HX_Guy]

Was about to post the same article. Thats pretty decent height for the area...how many floors is the current tallest building on the shores of Town Lake?

[phxSUNSfan]

Originally Posted by HX_Guy

Was about to post the same article. Thats pretty decent height for the area...how many floors is the current tallest building on the shores of Town Lake?

I have been in the tallest building, which houses KPMG, and it has 12 floors. The Bridgeview Condominiums at Hayden Ferry Lakeside is also a 12 floor midrise.

[Arquitect]

Originally Posted by HX_Guy

Was about to post the same article. Thats pretty decent height for the area...how many floors is the current tallest building on the shores of Town Lake?

That is indeed a pretty great height. About the same size as the Hub. It will look great right along the lake. I am really looking forward to seeing the design. My guess is that it probably won't be anything cutting edge (the firm mentioned tends to be more on the corporate look side), but should complement well with what is already there.