LGE Design Build, a Tempe-based developer, purchased a lot at the corner of Kyrene and Knox roads in Tempe for $375,000 and plans to begin construction in April on a 29,000-sf industrial and office building. The structure, being built for Spectrum Aerospace, is expected to be completed by October.

Sellers of the parcel were Thomas C. Bles and Thomas G. Bles, who were represented by broker Paul Miachika of the Phoenix office of DAUM Commercial Real Estate Services. Broker Rick Robertson of the Phoenix office of Lee & Associates represented LGE.

LGE Design Build also is developing a 32,000-sf, single-story office-condominium project on the parcel immediately to the west. Office suits will range in size from 1,800 sf to 10,000 sf, says David E. Seller, VP of sales. Construction is scheduled to begin in March, with completion in September.

"We just feel that area is good down there," Seller tells GlobeSt.com. "There is nothing else like that there."

Development costs on the project will total more than $5.4 million, he says. The office condominiums will sell for approximately $140 per sf for shell space.

There is very little office space in south Tempe and along the western edge of Chandler, the suburb to the east. The entire submarket has just 800,000 sf of office space, and most of that is designed for larger, single tenants. Tempe is a landlocked suburb immediately to the east of Phoenix.

LGE Design Build recently completed two other office-condominium projects in north Scottsdale: a 19,000-sf project at 90th Street and Mountainside Road and another one at 99th Street and Bell Road. The company has developed more than 200,000 sf of condominium-office space in the eight years it's been in business.