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Pinnacle Project Gets Moving With $9M HQ Deal

SCOTTSDALE, AZ-Meritage Homes pledges to take 42,612 sf or about half the space in an office project set to deliver in March 2006. As part of the deal with Furst Properties, the homebuilder gets temporary space for one of two subsidiaries and a design center.

By Jennifer D. Duell | Updated on October 15, 2004

SCOTTSDALE, AZ-Furst Properties LLC has nailed its first tenant for an 85,000-sf office project, the Pinnacle at Perimeter, getting an eight-year commitment for 42,612 sf from Meritage Homes Corp. The new space, set to come on line in March 2006, will bring together Meritage and two subsidiaries.

“Meritage decided that they needed everyone under one roof and wanted to have a design center as well,” says Tom Adelson of CB Richard Ellis Inc.’s Phoenix office. The Phoenix-based Furst agreed to house a Meritage subsidiary in temporary space until the Perimeter office building delivers at 17851 N. 85th St. The overall package is valued at $9 million over the eight-year term.

Adelson says the deal evolved from Meritage’s acquisition of Monterey Homes, which grew out of a previous merger with Hancock Communities. He tells GlobeSt.com that the deal was very complicated because of lease expirations. “A lease buy-out just didn’t make sense economically…a yet-to-be-built building made more sense,” he says.

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