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PHOENIX-Two of the region’s top developers are making plans to break ground in the coming months on a pair of office condo parks in the West Valley and Peoria. The combined 90,584 sf will be completed by first quarter 2005.

Cavan Development of Scottsdale and Phoenix-based Hewson Co. have plans underway to build “for lease” and “for sale” product serving white-collar and medical users. “It’s definitely going to meet an unmet need in the marketplace,” Brad Logan, a principal at Phoenix-based Cavan Commercial, tells GlobeSt.com.

The Hewson Co. has inked plans in the West Valley to bring out a $7.3-million, 5.3-acre office-condo development, Indian School Professional Plaza. Located on the northwest corner of 91st Avenue and Indian School Road, the project will feature nine freestanding buildings, totaling 54,630 sf. Plans call for a July ground-breaking followed by a six-month build-out.

The single-story buildings will come in two footprints: 5,250 sf and 7,750 sf, with suites as small as 1,200 sf. All buildings will be for sale at $165 per sf or available to lease with rent expected to be $18 per sf, according to Logan. He says he’s already holding purchase commitments with a law firm and medical office. Three acres on the hard corner are designated for a trio of retail pad sites.

Hewson has partnered with Ron Breckner, a private investor who’s owned the land for several years, says Logan. Patrick Hayes Architects of Scottsdale designed the project, and Bjerk Builders Inc. of Gilbert, AZ, will be the general contractor. Logan and Eric Butler of Cavan Commercial are listing the property.

Hewson is well-known in the Phoenix market for developing office properties, including the national headquarters for high-tech distributor Avnet, the largest corporate-based company in the city, according to Logan.

Cavan Development will develop Westbrook Office Park on the southeast corner of 87th Avenue and Union Hills Drive in Peoria. Union Hills Commercial LLC of Scottsdale recently sold about four acres to the developer for $1.1 million. Work is expected to begin in May and deliver in the fourth quarter.

The seller had 9.5 acres on the market, but it wasn’t a particularly attractive size for potential developers due to the size, according to Randy Grouskay, vice president of the land division for Colliers International’s Phoenix office. “It had been on the market for years. I’m about the seventh broker who’s worked on this,” says Grouskay. “It’s an untested area for condo-office, so the usual suspects, i.e. condo developers, did not want to make a 10-acre commitment.” He says he got Cavan’s purchase commitment on the same day that the owners decided to split the acreage into two parcels.

Escrow lasted about a year due to multiple site-plan amendments that had to be filed with the City of Peoria. Listed at $7 per sf initially, the deal closed at $6.15–a healthy number, Grouskay says, considering the developer had to front two large assessments totaling $350,000. Cavan’s broker was Dan Byron of Sperry Van Ness in Phoenix.

The $4.5-million Westbrook Office Park will contain 35,954 sf in six freestanding office condominium buildings. Buildings, ranging from 3,514 sf to 10,043 sf, will have suites for sale as small as 1,200 sf at $165 per sf, according to Logan, the development’s listing agent. He says a chiropractor, orthodontist and mortgage company already have signed purchase agreements.

Phoenix-based LGE Design Build is the general contractor for a project designed by Archicon LC of Phoenix. Grouskay says there are another five acres available for sale south of Cavan’s development site.

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