PHOENIX-D.R. Horton Inc., the nation’s largest homebuilder, will move its regional headquarters to the Deer Valley submarket from its current Scottsdale location. The Fort Worth-based company signed a two-year lease for 24,585 square feet of office space at Deer Valley Office Park, a two-building complex totaling 176,095 square feet.
“D.R. Horton is moving from a much bigger space – they’re downsizing by about 50%, and they’re moving from a more expensive submarket because they are trying to fiscally conservative,” says Ashley Brooks, a senior vice president with CBRE’s local office. “They signed a two-year deal because they wanted to be nimble so they could respond to market conditions.”
Brooks handled lease negotiations for CWCapital Asset Management in its capacity as special servicer for the class A office complex located at the northwest corner of 19th Avenue and the Loop 101. He partnered with Jim Bayless and Kelley Morrison, also with CBRE.
D.R. Horton, Inc. was represented by Steve Corney, Pat Williams and Andrew Medley of Jones Lang LaSalle’s local office, as well as Tim McCune of Dallas-based Corporate Realty Advisors.
D.R. Horton first toured the Deer Valley Office Park in November 2010. “It was a quick deal,” Brooks says, adding that the company will move into its new space at 20410 N. 19th Ave. just as its existing lease expires on April 1.
Brooks says D.R. Horton is familiar with the Deer Valley submarket – the firm’s regional headquarters were located there in the 1990s. The submarket is convenient for its employees since most of them live on the north and west sides of Phoenix.
D.R. Horton will occupy first-floor space in the 107,156-square-foot building. In addition to its regional offices, the new space will also house a homebuyer design center and mortgage operations. More than 100 people will work in the office.
With the D.R. Horton lease, Deer Valley Office Park is about 40% leased, Brooks says, pointing out that the complex lost its lead tenant Universal Technical Institute Inc. when it decided to move to MAX at KIERLAND, a six-story office building in Scottsdale.
CWCapital Asset Management took possession of the property in late 2010 and hired Brooks and his team to handle leasing. Birtcher Arizona previously owned Deer Valley Office Park.
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