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[IMGCAP(1)]PHOENIX-A 33-year-old vacant office building is getting a new life and new tenant, with help from a $1.5-million renovation. The 17,444-sf-building is part of a transit-oriented development trend starting to take hold along the Valley Metro Light Rail line.

The building at 2502 E. Washington St. was acquired last year by Scottsdale, AZ-based Washington & 25th Street LLC from Concentra Health Services Inc. of Dallas, which moved out after the sale. “The building was in a state of disrepair at the time,” says Pat Horan, first vice president with CB Richard Ellis in Phoenix. Horan, CBRE senior associate Chris Ackel and sales assistant Tyler Hannay are marketing the building for $24 per sf, full service.

Renovations will include an exterior redesign and extensive interior improvements. New windows and an elevator will be installed and upgrades made to electrical and mechanical systems. The building also will receive a new roof and new landscaping. Perlman Architects of Scottsdale is handling the redesign while Bjerk Builders Inc. of Gilbert, AZ is the general contractor.

[IMGCAP(2)]Although renovations have just begun, Nashville-headquartered WD Schock Co. Inc. has signed a five-year lease for 8,722 sf. “They’re currently located a mile and a half west of the property,” Hannay says. “They’re outgrowing their current space and need a larger presence. They wanted better access for their clients and something a little nicer.” Virgil Berry of Berry Realty & Associates in Phoenix represented the tenant, whose move-in will coincide with the renovation’s completion, which will be on or around Oct. 1.

Horan tells GlobeSt.com there is good activity on the remainder of the building, but no letters of intent as yet. He believes when trains begin rumbling on the tracks later in the year that things should start to get active in the area, dubbed the “Discovery Triangle” by the Phoenix officials because of its potential for transit-oriented developments.

“When the light rail was first announced, there was a gold rush of land acquisitions in the area,” Hannay says. “People are in a wait-and-see mode right now, waiting for everything to get up and running. Once it happens, you’ll see more redevelopment and transactions.”

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