232,648 SF of Class A Office Space Up for Grabs

The San Antonio-based USAA acquired the acreage in 1999 from the state, erecting the twin office buildings as interim space. Built in 2001, the 116,324-sf, three-story buildings are coming to market under the watch of Cushman & Wakefield of Arizona Inc., which beat out the local offices of CB Richard Ellis Inc. and Grubb & Ellis/BRE Commercial for the 128-acre USAA Norterra Office park assignment.

C&W senior directors Mike Beall and Tim Whittemore will lead the marketing drive. Beall says the chase will focus on a headquarters tenant for 25500 Norterra Parkway, which is outfitted with a cafeteria, while operations centers and multiple tenants are the targets for 25600 Norterra Parkway. The starting point for talks will be $22.50 per sf gross, full service. The goal is to lease up both buildings in 18 to 24 months, Beall tells GlobeSt.com.

USAA expects the exit to be done by the third quarter. "It's one of the largest class A block in the entire Phoenix metroplex," says Beall, adding the deals will be "plug and play" opportunities at market incentives and market commissions.

The Deer Valley submarket historically attracts large users, but that also means sharp turns in the area's vacancy when an exit is made. Thanks to Interstate 17, Deer Valley has evolved from a favored industrial landing ground to offices for the insurance, technology, healthcare, financial services and educational fields. And those industries, Beall says, will be actively courted for the 128-acre park at the crossroads of Happy Valley Road, Interstate 17, Norterra Parkway and Jomax Road. The C&W assignment is limited to leasing the buildings although USAA is actively looking for build-to-suit projects for the land.