Office Condos Now Under Construction on Rio Salado Parkway in Tempe, AZ
Sites Overlooking Tempe Town Lake Available in July 2006
TEMPE, Ariz., Feb. 17, 2006 – Construction has begun on Phase I of a two-story office condominium project, known as Riverside Office Plaza, that overlooks Tempe Town Lake on Rio Salado Parkway in Tempe, Ariz. Already sold out, Phase I will feature two, Class A buildings totaling approximately 75,000 square feet and is expected to be available by July 2006.
“All of the space for Phase I was completely sold out before a shovel hit the ground,” remarked Karim Demirdache, director of Hudson Realty Capital LLC (HRC) of New York, a real estate opportunity fund manager. HRC teamed with Scottsdale-based Biltmore Holdings LLC (Biltmore) to acquire this 4.9-acre development site. HRC and Biltmore also acquired control of an additional 12.5 acres of contiguous land along Rio Salado Parkway, which will be the site for Phase II and Phase III of Riverside Office Plaza.
“Once an industrial back road, Rio Salado Parkway has become the new gateway to Downtown Tempe. The Tempe Town Lake is a major draw to the Rio Salado area as are the growing number of restaurants, shops, hotels and residential developments,” Demirdache added.
Rio Salado is the name of a long-planned municipal project that included the damming of the Salt River flood channel to create the 220-acre Tempe Town Lake. A prized asset in the desert, the lake offers boating, fishing, rowing and many other aquatic activities to Arizona residents. The area will also be home to the acclaimed Tempe Center for the Arts (TCA), which is currently under construction. Upon completion, the 88,000-square-foot TCA facility will feature a 600-seat performance hall, a studio and a 17-acre art park.
Both complexes will be less than one-half mile from the Loop 202 full diamond interchange and a light rail station. In addition, the properties are just minutes from Sky Harbor International Airport. Parking space for Phase I includes 223 surface stalls and 65 covered spaces.
“These two transactions were off-market opportunities for us,” commented Demirache. “Our local partner negotiated directly with the seller, enabling us to purchase the sites at a very attractive price.”
Over the last 20 months, HRC has partnered with Biltmore, a full-service real estate investment and management company, to participate in more than $75 million of debt and equity transactions in Arizona. In Tempe, the two partnered to acquire a 4.7-acre industrial site located at the intersection of West University Drive and Park Lane. They have developed the property, known as University Park, into industrial flex condominiums.