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SCOTTSDALE, AZ-The San Jose, CA-based PayPal has marched into Arizona to set up a technology development center. The eBay-owned electronic check payment operation has leased the 92,562-sf 90 Mountain View in a five-year-plus deal.

PayPal’s plan is to open the center at 9999 N. 90th St. in November. The lease’s value is off limits, but local industry sources estimate that PayPal is paying roughly $28 per sf and getting a tenant-improvement package of $35 per sf to $37 per sf. The deal was brokered by Grubb & Ellis Co. executives from San Jose and Phoenix, who were unavailable for comment about the transaction.

A PayPal spokeswoman tells GlobeSt.com that the company had examined several office buildings in the Greater Phoenix metro. She says Scottsdale was particularly desirable due to the large pool of potential employees and growing corporate sector.

“Scottsdale has been a strong choice for many corporate users, partly because it’s near where a lot of the decisionmakers live and partly because it’s a very strongly educated demo,” says Bryan Taute, a senior associate with CB Richard Ellis in Phoenix, who is familiar with the area and the deal. “PayPal had looked at other parts of the Valley, including parts of Phoenix, Camelback and Deer Valley, but I suspect they chose Scottsdale because the demos are obviously very strong.”

PayPal is taking over an empty structure that was part of a 181,313-sf, two-building complex bought less than one month ago by Principal Real Estate Investors of Des Moines for $36 million. The sister property at 9977 N. 90th St. building is 90% leased.

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