Southwest Value Partners Acquires 463 KSF Office Building in Chandler, Ariz.
- Feb 26, 2014
Southwest Value Partners has acquired Continuum Business & Technology Park, a 463,300-square-foot, Class A office building on 152 acres in Chandler, Ariz., from Capital Commercial Investments, Inc., for $51.75 million.
CBRE’s Phoenix office and Capital Commercial Investments negotiated the sale.
“Due to the installation of robust infrastructure, numerous lakes and water features and interior roads, few sites can compete for institutional type companies looking for redundant water, fiber and power access in a Class A business park,” Dave Carder, senior vice president with CBRE’s Phoenix office, told Commercial Property Executive. “With 81 acres of developable land remaining, businesses and developers have an unparalleled opportunity for unique ground-up development in the form of build-to-suit and speculative building options.”
Located at 2501 S. Price Road, Continuum Business & Technology Park was entirely renovated in January 2013 with a new three-story atrium lobby, curtain wall glass, upgraded HVAC systems and state-of-the-art electrical and fiber infrastructure.
Continuum also includes a 10,000-square-foot University of Arizona learning center, where the higher-education institution is able to meet the educational needs of Chandler’s high-tech workforce by offering programs, classes and research, as well as recruiting other educational institutions.
Additionally, the redevelopment of the former Motorola campus included the construction of major infrastructure and horizontal improvements across the 152-acre property, including new landscaping, roads, sidewalks, lakes, water features and public gathering spaces.
CCI purchased the property in 2009 and CBRE has seen the project through rezoning, the carve-out of 40 acres to Cyrus One, massive infrastructure and horizontal improvements and a total overhaul of the existing building at 2501 Price Road, which was already 50 percent leased only six months after completion.
“We felt we had reached the pinnacle of the redevelopment process and it was a good time to maximize value before investing anymore in parking or additional build-to-suit or spec development,” Carder added. “Conversely, given the remaining developable land, the extremely low Class A office vacancies in Chandler and heavy interest and activity in the area from major users, the buyer is also coming into a lucrative opportunity as they explore further development options for the park and look to attract additional tenants to Chandler.”
According to Carder, the city of Chandler is one of the fastest growing cities in the country featuring a pro-business environment, a well-educated labor pool, a vibrant downtown core and premier shopping among numerous other amenities and attributes.
“These attributes have made it a desirable place for employers looking to locate or expand within the Valley,” he said. “Additionally, Continuum is located in what is known as the Price Road Science and Technology Corridor or ‘Price Road Corridor,’ home to numerous name-brand companies due to the aforementioned attributes offered by Chandler and its proximity to Loop 202, I-10, and retail amenities at and around Chandler Fashion Center.”
Continuum Business & Technology Park has been a catalyst for job growth since its redevelopment last year bringing almost 2,000 jobs to the campus between its first two major tenants, Nationstar Mortgage (1,200 jobs) and OnTrac (300 jobs). Going forward, the Park is expected to be the foundation for thousands more jobs in Chandler as well.
“As metro-Phoenix continues working to entice major companies to relocate to the Valley of the Sun, projects like Continuum Business & Technology Park will provide the exact environment those companies are looking for,” Carder concluded.