By Edward Gately
The Republic | azcentral.com
The first of two new, four-story office buildings will be under construction next week at SkySong, the Arizona State University Scottsdale Innovation Center, on the McDowell Road corridor.
Plaza Cos. announced the Aug. 19 start of construction on SkySong III, a 145,000square-foot building that will be located along SkySong Boulevard, just southwest of the complex’s signature shade structure.
Plaza Cos. is the master developer of SkySong, in partnership with the ASU Foundation and Scottsdale. The financing for SkySong III, $32 million, is being provided by Alliance Bank of Arizona. Tucson-based Holualoa Cos. has partnered with Plaza Cos. for the project.
“The momentum at SkySong really was strong all during the recession with the lease-up of SkySong I and II, and then the start of the apartment project,” said Sharon Harper, Plaza Cos. president and CEO. “Now to move into a third building along SkySong Boulevard is really continuing the tremendous excitement about this premiere location for companies that want to be connected to ASU and located in the center where so many people work and who will find opportunities at SkySong.”
ASU will lease 1 1 ⁄ 2 floors of the third building, and WebFilings, a current Sky-Song tenant, will expand its presence by taking a full floor. Plaza Cos. also will be taking office space on the first floor.
WebFilings develops and markets fully integrated, cloud-based software that helps companies meet U.S. Securities and Exchange Commission reporting requirements. At build-out, the company will have about 100 employees at SkySong.
Combined, the anchor tenants allow construction to begin with the building 65 percent leased. The first two office buildings, SkySong I and II, are fully leased.
“It’s important that we are under construction and companies looking to locate can see the space and know a definite time line when the building will be complete,” Harper said. “We hope to have it ready for occupancy in mid-summer 2014, late June, early July.”
More than 1,000 employees and 50 companies are housed on the SkySong property, at the southeastern corner of McDowell and Scottsdale roads. The mission of the mixed-use, 42-acre development is to be a job creator and entrepreneurial hub. “It’s just another sign of how that corridor is developing on all lines, with what’s promised, planned and under way,” said Scottsdale Mayor Jim Lane. “SkySong has already made a significant impact in the Scottsdale and McDowell Road corridors in helping bring in new businesses and economic growth.”
Already under construction is Sky-Song Apartments, a 325-unit complex with the first phase, including 74 units, opening in early October. The next 80 units will open in December, with more units completed next February and April.
Plaza Cos. is actively involved in discussions with potential tenants for Sky-Song IV, which also will be 145,000 square feet, and “we’re poised for it to move rapidly,” Harper said.
With the completion of SkySong III and IV, and the apartments, the square footage of development at SkySong will total more than 900,000 square feet.
‘‘We hope to have it ready for occupancy in mid-summer 2014, late June, early July.”
SHARON HARPER
Plaza Cos. president and CEO