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News release

PHOENIX, AZ

Demand for Density Meets Demolition Strategy at New JLL Office Listing

90,000 s.f. Tempe 10/60 Corporate Center represents unique adaptive reuse play


PHOENIX, April 30, 2014 – Greenlaw Partners and The Broe Group have selected the Phoenix office of JLL to market a 90,000-square-foot office project in Tempe, Ariz., where the demand for high density space spurred demolition of a portion of the complex in exchange for a higher parking ratio. Greenlaw Partners and The Broe Group purchased the project for $3.5 million.

Tempe 10/60 Corporate Center (formerly known as Corporate Fountains) is located at 4415 – 4625 South Wendler Dr. in Tempe, alongside Interstate 10 and just south of the I-10/SR-60 (Superstition Freeway). The project originally totalled 110,000 square feet in two 45,000-square-foot, two-story buildings and one 20,000-square-foot, single-story building. Upon review of the property, Greenlaw and The Broe Group recognized the opportunity to add value to its investment through a number of key physical changes. In an effort to increase density, one of the project’s buildings—located at the center of the property—was demolished to create a two-building, 90,000-square-foot campus.

The demolition upgraded the project’s parking ratio from 5:1,000 to 7:1,000. The new owners plan to complete additional improvements in the coming months, including the demolition-rebuild of existing building interiors.

“This creates a greater corporate advantage and improved occupancy costs for our target users,” said Scott San Filippo, partner at Greenlaw Partners. “JLL is a great choice to market this asset in that they are a strategic partner in effectively positioning creative opportunities such as Tempe 10/60 Corporate Center. Phoenix has a lot of value-add opportunity and it will be a market where we look to remain active.”

“Going to this length to create a high density environment underscores Phoenix’s demand for this type of space,” said JLL Managing Director Dave Seeger, who is marketing Tempe 10/60 Corporate Center with JLL colleague and Managing Director Karsten Peterson. “A parking ratio of 4:1,000 or 5:1,000 is good, and 6:1,000 is great, but a ratio of 7:1,000 is outstanding.”

According to JLL’s Q1 2014 Phoenix Office Report, tenants across the Valley are beginning to see their already limited space options dwindle in hot submarkets like Tempe. This is driving up rental rates and creating growing upside potential for owners, including those with high-density space that is attractive to users like call centers, high tech companies and financial institutions.

“We’re excited about the opportunity to partner with Greenlaw on this acquisition,” said Jim Crawford of The Broe Group. “We’re bullish on Phoenix as well, but recognize that success is based on teaming with owners who are experts at adding value and who understand the dynamics of the tenants in the market.”

“Corporate America as a whole is moving toward the open office configuration—highly efficient, very flexible, higher density footprints,” said Peterson. “Adaptive reuse plays like Tempe 10/60 Corporate Center are a prime example of how owners can repurpose inefficient, zombie space to economically reposition a project.”

Originally built in 1985, Tempe 10/60 Corporate Center features 10-foot ceilings, floor-to-ceiling windows, generous landscaping and immediate freeway visibility and access to Interstate 10 via Baseline Road. It is minutes from the I-10/US-60 interchange, Arizona Mills Mall, Sky Harbor International Airport and Arizona Grand Resort.

For more news, videos and research resources on JLL, please visit the firm’s U.S. media center Web page: http://bit.ly/18P2tkv.

About Greenlaw Partners
Greenlaw Partners is a full service real estate investment management and operating company that acquires, develops and manages properties. Its core business is the acquisition and management of income and land entitlement projects, creating value within opportunities and maximizing returns for its investors. The firm’s existing portfolio totals approximately 4 million square feet of commercial space located throughout the Western U.S., with a track record of $1.2 billion in acquisitions since inception.

About The Broe Group
The Broe Group is an actively-managed, family-owned, private investment company headquartered in Denver, Colorado where for 40 years the firm has been a value investor focused on asset based companies concentrated in real estate, transportation, energy, ranching and venture capital.  Its current portfolio exceeds over billion dollars in value and The Broe Group employs approximately 1,200 employees across North America. Broe’s historic real estate investments include value add office buildings, residential, distressed debt portfolios, medical office and senior living uses and other value opportunities.

About JLL
JLL (NYSE:JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual revenue of $4 billion, JLL operates in 75 countries worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 3 billion square feet and completed $99 billion in sales, acquisitions and finance transactions in 2013. Its investment management business, LaSalle Investment Management, has $47.6 billion of real estate assets under management.

In Phoenix, JLL is a market leader employing nearly 500 of the region’s most recognized industry experts offering office, industrial and retail brokerage, tenant representation, facility and investment management, capital markets and development services. In 2013, the Phoenix team completed 10.3 million square feet in lease transactions valued at $512 million, directed $72 million in project management and currently leases and/or manages a 22.8 million-square-foot portfolio. For more news, videos and research resources on Jones Lang LaSalle, please visit www.jll.com or www.jll.com/phoenix.