Tuesday, April 3, 2012

High rise building planned for Tempe Town Lake

Ryan Companies U.S. Inc. and Sunbelt Holdings announced today that they will build a new 10-story high rise office tower on the southern shore of Tempe Town Lake next to an existing office tower that houses major financial and tech businesses.

The new high rise, Hayden Ferry Lakeside III, will sit at the northeastern corner of Mill Avenue and Rio Salado Parkway. The building's curving cobalt-blue design will mirror the existing commercial and residential developments on the south side of Town Lake.

With office space virtually full at Hayden Ferry Lakeside I and II, the adjacent lake properties Parkway Properties Inc. recently purchased, Tempe officials said Town Lake is a sought after site for high-profile business wanting a prominent setting to showcase their company.

City leaders and developers hailed the high-rise project as a signal that the recession is over and said more than 900 jobs are expected to be generated by the development.

"We did say in 2008 that we were poised to be the first to recover and we're seeing that now with this," Tempe Mayor Hugh Hallman said.

Hayden Ferry Lakeside's recent additions include Silicon Valley Bank, which will soon move into the high rise, and Xhibit, a digital media company relocating from Michigan. Microsoft, KPMG and Smith and Barney also have offices in the tow.

Given the demand for luxury office space in the Valley, Molly Ryan Carson, vice president of Ryan Companies, expects Hayden Ferry Lakeside III's 245,000-square-feet of leasable space to fill quickly.

Ryan Companies is completing the purchase of Hayden Ferry Lakeside III from Sunbelt. Construction is expected to start by the end of 2012.

Development could kick off sooner if CBRE leases the building to about 40-50 percent of capacity, Ryan Carson said, adding that businesses have already contacted CBRE about leasing opportunities.

Ryan Carson said the new Tempe development will allow Arizona to court prominent national and international businesses that are rebounding and looking to establish a presence in luxury office space in the west and southwest.

"Throughout the Valley we are running out of exceptional Class A office space," she said. "With this (development) we're meeting that market. It will help us compete nationally against California, Nevada and other places."

Tempe councilman Mark Mitchell noted that Hayden Ferry Lakeside III will extend to the Mill Avenue Bridge and the Rio Salado Parkway sidewalk, transforming the northern gateway into downtown Tempe.

"Getting 245,000 square feet filled in downtown is going to help people see why there's a buzz about Mill Avenue," he said.

The recession has hit downtown Tempe retail business hard. But Nancy Hormann, president of Downtown Tempe Community, which manages the Mill Avenue District for landowners, considers the new high rise and revitalization of the neighboring historic Hayden Flour Mill the shot in the arm Mill needs.

After years of neglect, Hayden Flour Mill, across the street from Hayden Ferry Lakeside, will soon be open for music programming and other community events.

"Tempe Town Lake is one of the most desirable places to be in the Valley," she said. "This will finally give us the synergy we needed to connect the lake and the downtown."

Tempe development director Chris Anaradian said development of business space in downtown Tempe will be an economic driver for the Valley.

Papago Gateway Center, 260,000 square feet of luxury commercial space at the northwestern corner of Mill and Washington Street, is 80 percent leased. Tempe Gateway, at Mill and Third Street, which houses Limelight Networks, Waste Management, Parsons and TriSports.com, is about 40 percent leased.

The recession has helped the Valley broaden its perspective on development and growth, Anaradian said.
"It's not just about building anymore," he said. "It's about the 1,000 jobs that will be in that building. That's a much, much more evolved conversation for Arizona."

by Dianna M. Náñez - Mar. 20, 2012 10:58 AM The Republic | azcentral.com

High rise building planned for Tempe Town Lake

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