The Douglas Allred Co. in San Diego (Douglas Allred, David Allred, principals) has acquired two properties within the Phoenix International Sky Harbor Airport area to develop almost 200,000 sq. ft. of office and flex space.
The Douglas Allred Co. has been one of the most active developers, buyers and sellers of industrial and office buildings in the Valley. The privately-held company plans to develop a 107,817-square-foot flex, office project at 4141 E. Broadway Road in Phoenix. A company formed by Allred paid $5.168 million to buy that 10.53-acre site. Maricopa County records show Dared 90 LLC (Allred entity) acquired the property in a cash transaction. The sellers were Arizona Cotton Growers Association and Supima, both non-profit companies based in Phoenix. The buyer was represented by Mark Krison and Luke Krison of CBRE in Phoenix. The sellers were represented by Steve Mardian and Brian Lee of Cushman & Wakefield in Phoenix. The CBRE agents have the marketing assignment on the newly-planned development, which is being called Allred Broadway Center.
David Allred says the flex building will be able to allow for back-office, high-tech assembly or other types of businesses. Balmer Architectural Group in Phoenix is designing the project. Construction scheduled to start in May, with completion following about 10 months later. Willmeng Construction Inc. in Phoenix to serve as contractor. Development cost (land and building) estimated at $15 million. Union Bank is providing the construction financing. Mark Krison says the company is hoping to find a single tenant to occupy the structure, but the flex property can also accommodate multiple tenants.
The building, with 26-foot clear height, can be doubled in size with the addition of a mezzanine level. The project is parked at 7 spaces per 1,000 sq. ft. David Allred says the company plans to complete construction, lease-up and hold the asset for investment. The site, located south of Interstate 10, is about one mile south of another property recently acquired by Allred that is planned for an office project of almost 90,000 sq. ft. That 6.95-acre site is located north of I-10 at 4039 E. Raymond Street. Dared 89 LLC (Allred entity) paid $3.6 million to buy that parcel, which has been occupied by a 64,856-square-foot industrial building.
The seller was Avalon Pacific-Santa Ana L.P. in Newport Beach, Calif. (John Heffernan, pres.). The buyer was represented by Jim Wilson of Cushman & Wakefield in Phoenix. Kurt Saulnier and Ken McQueen of Lee & Associates Arizona Inc. in Phoenix represented the seller. The manufacturing structure on Raymond Street, which was built in 1970, was razed to make way for the newlyplanned office. That two-story building is being designed by Balmer Architectural Group. Willmeng Construction is the contractor. David Allred says construction is set to start in March, with opening to follow 10 months later. The 89,889-square-foot building is being called Allred Forty. Development cost (land and building) estimated at $20 million. Union Bank is providing construction financing. Wilson has the leasing assignment and is looking for tenants needing from 20,000 sq. ft. and up. The project will be parked at 6.7 cars per 1,000 sq. ft. Look for Allred to complete construction, lease-up and hold for investment.
Over the years, BREW has reported The Douglas Allred Co. developing millions of sq. ft. of office and industrial buildings in the Valley. In Chandler, the company is developing the 3 million-square-foot Allred Park Place business park within the Price Road Corridor. That mixed-use development is at the intersection of the 101 Loop and 202 Loop. The Douglas Allred Co. is looking for additional real estate investment and development opportunities in the Phoenix area.
Read the original article from Business Real Estate Weekly of Arizona, here.