Chandler Freeways Business Park is a joint venture between the Phoenix office of Ryan Cos. and Chicago-based City Group Investments. At build-out, the park will contain nine buildings with an aggregate 850,000 sf. Designed by the Phoenix office of Balmer Architectural Group, it is going up at the northeast corner of Pecos Road and 56th Street, along the southern edge of Chandler, one of the fastest-growing suburbs in the Valley.
The project's first phase is bringing three fully divisible buildings in configurations of 31,500 sf, 47,400 sf and 87,500 sf. The flex-design industrial buildings will feature 25-foot clear heights and truck wells. The building construction also is set to begin immediately, with a staggered completion schedule of April, May and June, says Bob Mulhern, vice president of development for Ryan Cos. "You cannot find a 58-acre business park like this anywhere in this area," he tells GlobeSt.com. "There are not many nine-building business parks. It will create a great park setting."
One of the park's most attractive elements is its proximity to the freeways: Interstate 10 is a half mile west and the under-construction San Tan Freeway is immediately south, Mulhern says. The section of the San Tan Freeway near the park is expected to open by early 2003. Freeway visibility will be available to some tenants.
Last year, Ryan paid about $117,000 per acre for the land, which is as far south as the Valley can go and borders the Gila River Indian community. The price will drive very competitive rates, says Mulhern. Space in the initial building trio will range from 69 cents per sf to 72 cents per sf, triple net.
Given the slumping economy and decrease in demand for industrial space in the Valley, Ryan considered delaying the start of the project. "We looked long and hard at whether it was the time to start," Mulhern says. "Like all real estate, timing in your niche is very important. We think right now, given the product, that the timing is right. Certain product types we are not very enthusiastic about, but that flex product in the business park is in demand. If you look out there right now, it's not available." The CB Richard Ellis Phoenix team of Bob Crum, Mark Krison and David Carder is marketing the park.
This is Ryan and City Group's second joint venture in the region. In 2000, the partnership developed Ryan Corporate at Kierland, a 100,000-sf office building in Scottsdale.
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