Lincoln Property, Goldman Sachs Expand Phoenix-Area Campus
- Apr 11, 2018
Lincoln Property Co. is doing it again. The full-service real estate firm has teamed up with Goldman Sachs to develop the second office tower at The Grand at Papago Park Center in Tempe, Ariz. The partnership recently broke ground on the 352,000-square-foot speculative property, which will be part of the 1.8 million square feet of office offerings at the suburban Phoenix live-work-play destination. The development is scheduled for completion in the second quarter of 2019.
LPC and Goldman were tapped by Papago Park Center Inc., an entity of Salt River Project and master developer of The Grand, in 2015 to bring the mixed-use community’s eight-building office segment to fruition. Sprouting up at 1027 W. Roosevelt Way, the state-of-the-art Building Two will answer a loud cry in the local office market. The property is part of a 60-acre mixed-use project that will consist of 3.2 million square feet upon full build-out. “The demand for creative, modern Class A office space is still extremely strong–not just in Tempe but across metro Phoenix,” David Krumwiede, executive vice president with Lincoln Property Co., told Commercial Property Executive.
LPC and Goldman have tapped commercial real estate services firm Cushman & Wakefield to oversee leasing of Building Two, while Whiting-Turner serves as general contractor for the project. Designed by architectural firm DAVIS, Building Two will provide more than premier office digs. The nine-story tower will also feature a 10,000-square-foot amenity lounge on the first floor, a rooftop lounge and a private fitness facility.
Taking Tempe’s temperature
In 2017, LPC and Goldman delivered completed the first of The Grand’s Class A office buildings, a 213,000-square-foot speculative project and one of the largest Phoenix office completions in 2017. The property is already at maximum occupancy. A quick lease-up may very well be in the cards for Building Two as well. With a current Class A vacancy rate of less than 2 percent according to Krumwiede, the Tempe office market is on fire.
“What sets Tempe apart is its ability to deliver advantages that go above and beyond in terms of what businesses and up-and-coming professionals want in their workplace; things like a vibrant downtown, an educated workforce coming out of Arizona State University and a connected Light Rail, freeway and airport system,” Krumwiede said. “Combine these benefits with a strong and still-growing Phoenix economy, and Tempe is in a very enviable position when it comes to the runway for future office activity. The Grand is positioned to fill that demand with what we’re calling Class AA space for either full-building or multi-tenant uses.”
Images courtesy of Lincoln Property Co.