Project Name: Scottsdale Commerce Center (SCC)
Client: California-based pension fund advisor (seller)
Property:
- Five building, 130,000 square foot multi-tenant flex campus in Scottsdale, Arizona adjacent to General Dynamics (formerly Motorola)
- Originally built in 1987
Challenges:
- Price Issue: Our client purchased the property in 1988 at market peak.
- Location Issue: The property had limited visibility and was located outside any use-compatible business parks with strong identities.
- Tenant Stability Issue: Many tenants either had short-term leases or were reliant on the high tech sector and discretionary funding sources.
- Perceived Parking Issue: Parking ratio of 4/1000 square feet below market preference of 5/1000 square feet.
- Possible Environmental Issue: Underground storage tanks once on property, with limited documentation.
Solutions:
- Created Positive Vision: Focused marketing on positive redevelopment activity planned for the immediate area, as well as improving transportation dynamics.
- Tenant Interviews: Conducted a comprehensive tenant interview process to gain understanding of possible untapped demand niches. Verified lack of parking problems.
- Tenant Repositioning Plan: Identified possible contingency plans for future occupancy of nonconventional uses, such as a gym used by neighboring Motorola.
- Environmental Assurance Plan: Oversaw a thorough environmental review of the site.
- Targeted Marketing Plan: Pre-qualified 100 potential buyers based on their investment criteria.
Outcome:
- Property sold within projected 6-month time frame, achieving year-end close.
- Achieved highest price per square foot for product type in submarket.
