McKesson's $16M Pact Triggers Consolidation Plan

"It's tremendous for the building, for Scottsdale and for the tenants," Ray Chalme, the Galleria's owner, tells GlobeSt.com of the $16-million lease that will put McKesson into almost all of the 120,000-sf concourse level at the 4343 N. Scottsdale Rd. property.

Brian Black, a Trammell Crow Co. vice president in Phoenix, and senior associate Jerry Noble represented McKesson in the transaction. Black says the deal took about nine months to negotiate. The San Francisco-based Fortune 20 healthcare services and information technology company plans to use 90,000 sf for the call center operations with the remainder serving as administrative offices.

The move, expected to occur within the next few weeks, will consolidate McKesson's operations from 9700 N. 91st St., 9201 E. Mountain View and an office building at Kierland, all in Scottsdale. Black says the firm's leases on all three properties are set to expire soon.

The new address gives McKesson a high-profile identity in one of the most recognizable buildings in downtown Scottsdale, says Chalme, who estimates the property will be fully leased by the end of the year. Set on more than nine acres in the heart of the city, the Galleria counts among its tenants New York Life, the Scottsdale Culinary Institute, American Founders Life and Blue Cross/Blue Shield.

"It's a fantastic location," Black says of the site located near the Scottsdale Fashion Square Mall, nearby restaurants and within close proximity of Loop 101. Black says the firm selected the Galleria after more than year of searching because it offered ample parking and a location that provided easy access for its employees to all areas of the Valley along with an area rich in amenities.

Along with Black and Noble, the deal was put together by CB Richard Ellis Inc.'s Jim Fijan and Jerry Roberts, both of whom represented the building owner, New York-based JEMB Realty Corp., in the transaction.