PHOENIX-A summer 2007 merger between two communications services providers has resulted in a seven-year, 50,000-sf expansion lease. Integra Telecom Inc., headquartered in Portland, OR, has taken the space at the 86,835-sf South Mountain Center at a consideration in excess of $4.5 million.

Integra Telecom, which acquired Eschelon Telecom Inc. of Minneapolis, will move into its new space at 3540 E. Baseline Rd. on Jan. 1. According to Blake Hastings, VP with Grubb & Ellis BRE/Commercial LLC's Phoenix office, Eschelon Telecom is in 15,000 sf at 2600 N. Central Ave. in the CBD. The merger, however, has meant the need for more space.

“Integra had looked for about a month, and were considering a couple of subleases in addition to this,” says Hastings, who brokered the transaction between the tenant and building owner Equastone of La Jolla, CA. He says that Integra was looking for an inexpensive, long-term deal, which is why South Mountain Center was selected.