Carlson Buys Parcel at Cotton Center Planned For Office-Retail Buildings

Phoenix, Arizona —A company formed by Carlson Real Estate Company of Minneapolis, Minn. Paid just under $5.4 million to buy a 9.2-acre parcel within the Cotton Center business park in Phoenix. The seller was a venture formed by Valley investors Jerry Colangelo, David Eaton, Mel Shultz, Dale Jensen, and the Apollo Fund in New York City. Tucson-based investor Don Diamond also is a partner in the group. The sale was brokered by Brain Lee and Steve Mardian of Grubb & Ellis\BRE Commercial in Phoenix. The parcel is located along the west side of 48th Street and north of Cotton Center Boulevard. Chris Kirby, Senior Director at Carlson in Phoenix, says plans include a two-story 40,000-square-foot office building on 3.5 acres, 17,000 sq. ft. of retail shops on 2.3 acres and lot sales for the remaining 3.4 acres. Butler Design Group is the architect. Construction on the office and retail space is set to start by year-end. Completion expected around third quarter 2007. Contractor still to be selected. Kirby says the company will sell developed lots to end users. Leasing and marketing agent still to be selected. Development cost (land and buildings for office and retail) estimated at $12 million. Financing still to be arranged. Carlson Real Estate Company previously developed a two-story office of 117,000 sq. ft. and 147,000 sq. ft. of flex space in two structures at Cotton Center. The company still owns a 4.5-acre parcel within the business park. Carlson wants to develop a 75,000-square-foot office structure on that parcel in a build-to-suit deal. Over the years, BREW reported Carlson acquiring, developing, and selling office, industrial and retail properties in the Phoenix area. The company is looking to acquire existing general industrial properties and land to develop business parks in the Valley. In March, BREW reported Carlson planning to develop a 550,000-square-foot business park just east of the southeast corner of Gilbert Road and the Loop 202 in Gilbert. Kirby and Joe Ihrke are the contacts for Carlson in Phoenix...(602) 273-1111. Talk to the JDMD principals at (602) 956-7809. Reach Lee and Mardian at (602) 954-9000.

Source: Business Real Estate Weekly of Arizona – Vol. XII, No. 23; June 16, 2006

Carlson Real Estate Company is an affiliate of Carlson Companies, parent company of Radisson Hotels, T.G.I.Friday’s Restaurants, and other national and global businesses, and one of America’s largest privately held companies.  Carlson Real Estate Company is dedicated to developing long-term client relationships by operating with integrity and care, and providing innovative and accommodating solutions.  Its portfolio of office and flex/industrial space concentrated in Minnesota and Arizona exceeds 5 million combined square feet.