X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

SCOTTSDALE, AZ-Services Group of America Inc. is under contract to purchase the 175,000-sf Financial Center at Kierland from a local developer. The deal, set to close in the spring, is the final piece to last summer’s headquarters relocation from Seattle.

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.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.