Developer Maps Out Class A Office Condo, B-T-S Project

The acreage, located near the southeast corner of Priest Drive and Rio Salado Parkway, sells for about $12 per sf, according to industry experts. Local developer Vaughn Street LLC sold the acreage to Biltmore Holdings, which is teaming with Phoenix-based LGE Design Build on the development of Riverside Office Plaza.

The development will be situated across the street from the under-construction Tempe Center for the Arts. Riverside Office Plaza's first phase will break ground in June on the 4.7-acre tract, says Jeff Hartland, a vice president with Grubb & Ellis/BRE Commercial LLC. Construction will be completed in first quarter 2006.

The first phase will consist of twin office condo buildings, totaling 75,286 sf. The two-story buildings, which will sell for $172.50 per sf, have a value of roughly $14 million.

Hartland tells GlobeSt.com that negotiations are underway with three buyers for an entire building. "The project has been well-received," he says. "The opportunity to buy, coupled with the site's access and nearby amenities--there's nothing like it." He adds any office condo projects underway in the immediate area, but acknowledges there are several rising throughout the Valley. Hartland, Bruce Calfee and Josh Wyss, also with Grubb & Ellis/BRE Commercial, are marketing the development.

Biltmore Holdings is scheduled to close March 1 on the additional acreage, earmarked for the second and third phases of Riverside Office Plaza. Hartland says the remaining acreage could accommodate as much as 300,000 sf of build-to-suit space.

"Our goal is to offer the land today as a build-to-suit opportunity," Hartland explains. "We don't want to over saturate the market with too much office condo product, but as we build out and see the demand for the first phase, my guess is that we will continue to build office condos for phase two and three."

Patrick Hayes Architecture of Scottsdale designed Riverside Office Plaza. LGE is the general contractor.