Services Group plans to move into the class A office building at 16100 N. 71st St. in mid-2007. "The developer had no thoughts of selling the building. The plan was to lease to multiple tenants for a long-term hold, but I talked them out of it," Charles W. Hall III, senior vice president with Grubb & Ellis/BRE Commercial LLC's Phoenix office, tells GlobeSt.com. Hall, who brokered the transaction, was unable to discuss financial details due to confidentiality agreements, but reports put the development north of $40 million.
Southwest Property Ventures recently broke ground on the building, which is being renamed SGA Corporate Center at Kierland. Hall says the building, situated on seven acres, will be turned over in shell condition. Services Group of America plans to occupy 125,000 sf, agreeing to finance the interior finishing touches out of its own pocket, and putting the 50,000-sf balance on the leasing market.
Hall and Grubb colleague Peter T. Menna along with Kelly McKone at the local Kelton Cos. LLC are leasing the property. Hall predicts it most likely will be 100% leased by the time construction is finished.
Services Group of America is a foodservice distributor for hospitals, restaurants and schools in 15 states in the West and Midwest. The teams presently are working out of three temporary locations in the Scottsdale Perimeter off Loop 101. Hall says the company's owner had always targeted North Scottsdale for its headquarters. "That quadrant of the market was always their focus," he says. "This is near the airport, has good freeway access and good housing options."
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.