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PHOENIX-A 24-acre tract at a prime intersection in the Sonoran foothills is slated for 98,000 sf of office condos and as much as 90,000 sf of retail space. The projects will cost $18.5 million.
Shea Commercial LLC acquired the acreage at the junction of 27th Avenue and Carefree Highway from locally based Hardy Properties, paying $7.3 million in an off-market transaction, says Bob Deininger, a principal with Shea Commercial. The Scottsdale-based developer immediately flipped 11.5 acres to Chivas Retail Partners LLC, an investment group sponsored by Scottsdale-based Diversified Partners LLC. Chivas Retail paid $5.8 million for the C-2-zoned land.
"There is a limited amount of commercial land in the area," says Tim Dollander, a principal with Chivas Retail. "This land is strategically located in the midst of a lot of new single-family homes."
Deininger tells GlobeSt.com that Shea Commercial plans to develop 14 one- and two-story office condominium buildings, totaling 98,000 sf, on its 12.5 acres. Boasting a price tag of $9 million, the Villages at Sonoran Canyon will break ground in September. The buildings, ranging from 5,100 sf to 20,000 sf, will sell for $185 per sf to $195 per sf.
Deininger says the first office condos aren't scheduled for delivery until March 2006, but roughly 70% of them have been pre-sold. "A lot of the buyers will use the condos for medical uses," he says, adding a chiropractor and three dentists have committed to space.
Shea Commercial is handling the marketing internally. Locally based DFD CornoyerHedrick designed the complex; Caviness Construction Inc., also from Phoenix, will be the general contractor.
Chivas' project, which has not yet been named, will include a grocery anchor ranging from 45,000 sf to 74,000 sf. "We're talking with several grocery chains and we hope to nail down the anchor by the end of the year," Dollander says, adding the anchor's size will set the space allocation for pad sites and inline shops, which are expected to lease for $30 per sf.
Chivas, using an in-house design team, is working up several site plans to help decide with the build-out. "We hope to break ground sometime during the second quarter of 2006," Dollander says.
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