Home News Biggest SkySong building in Scottsdale planned as buyers sought

Biggest SkySong building in Scottsdale planned as buyers sought

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As SkySong developers are preparing to build the largest office building planned on the Scottsdale campus, the ownership group will either sell the existing office buildings or sell their shares to make a new investment. I’m trying to add a house.

Built on land rented from the city of Scottsdale, Sky Song is one of the “innovation zones” of Arizona State University. University Realty, the real estate arm of ASU’s enterprise partner, rents real estate on the ground, and private companies rent space from universities.

Since the project began in 2006, five office buildings totaling 715,000 square feet have been built on 42 acres of land near the Scottsdale and McDowell roads. The building is almost completely rented by private companies and universities. The building is University Realty and the developer Plaza Cos. And owned by a joint venture including Holualoa Cos.

Whether the building will be sold completely or investors will buy shares and join the ownership group, what the group will offer after it is brought to market, PlazaCos. Depends on Sharon Harper, Chairman and CEO of, and Morgan Olsen, CFO. ASU said. Regardless of the amount of shares purchased by new investors, ASU and Plaza will continue to be involved, University Realty will own the rent of the land, and Plaza will act as the master developer and real estate manager.

Olsen said the value of the five office buildings was a “nine-digit number,” but refused to disclose the full valuation. According to an economic survey by Elliot D. Pollack and Co. released in 2020, the total construction of the SkySong site so far was $ 438.5 million.

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The largest building still under construction

The group is preparing for the construction of SkySong’s sixth and largest office building. Harper said construction of a 340,000-square-foot office building will begin after the company begins a space lease.

The group also expanded SkySong’s ground leased space in 2020, adding an additional one and a half acres of constructable space. According to Harper, the additional space can be an office built for a particular company or a speculatively built office.

According to Harper, SkySong is a successful example of redeveloping an outdated and outdated retail center into a catalyst for new activities in the region. This place was once Los Alco Small and was supposed to be a candidate for the Arizona Coyote Arena before the team moved to Glendale.

“SkySong was a complete transformation for the region. From a car dealership that got in, from a few false starts at Coyote, not only affected these 42 acres, but also created a platform for the region. It’s been done, to grow, “Harper said.

According to the Economic Effect Survey, SkySong’s annual economic effect is approximately $ 1.3 billion, including activities carried out in the development itself. Similar to the activity generated by the spillover, Services needed by companies and people in SkySong, money generated by business activities there, etc. From 2006 to 2020, SkySong generated $ 27.1 million in revenue for Scottsdale, according to a study. This includes leasing fees, sales tax and taxes resulting from the ancillary impact of development.

Demand for office space has been heavily impacted by the COVID-19 pandemic, but Harper and Olsen are still interested in Skysong-like developments that focus on close partnerships with universities and innovation. Said to have.

Both Harper and Olsen said they would continue to grow Skysong and look for investors interested in sticking to their original vision. Other buildings of the multipurpose facility, including the hotel, have already been sold to other investors.

The sixth office building has the money to move forward without selling, but Harper said that if investors are interested in participating in the development of the sixth building, that’s the plan. He said it could be part of it.

Contact the reporter at [email protected].. Follow her on her Twitter @CorinaVanek..

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