Pima Center - A 209 Acre Multi-Use Business Park
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From the Scottsdale Republic
 
Long-anticipated projects benefit Salt River community, Scottsdale
7/28/2006 - By Peter Corbett
Scottsdale, AZ - Business park developments along Loop 101 on the Salt River Pima-Maricopa Indian Community seem to have sprouted like weeds after a rain, but the long-term lease deals go back more than seven years.

The Alter Group, based in Skokie, Ill., is developing the $400 million Riverwalk Arizona project on 187 acres southeast of Loop 101 and Via de Ventura.

It will include 1.5 million square feet of offices, 600,000 square feet of retail and one or more hotels.

To the northwest, the Main Spring Capital Group is developing Pima Center on 209 acres. It will include 3.5 million square feet of offices, warehouses, retail and a hotel.

These are two of the largest commercial projects on tribal land in the country.

Both projects have huge implications for Scottsdale and the Salt River Pima-Maricopa Indian Community.

Diane Enos, a Salt River Tribal Council member, said the community held out for quality and environmentally responsible development and it is starting to pay off for the tribe and its members.

“Those landowners have been waiting for a long time,” she said.

Workers boost city

Scottsdale loses tax revenue from the commercial development, but the estimated 40,000 workers expected along the corridor will boost the city’s economy. Employees and executives will live in Scottsdale and contribute tax dollars to the city.

Curtis Brown, a partner with Ross Brown Partners, Inc., which is marketing Pima Center for Main Spring Capital, said the business parks on Salt River are well situated near executive housing in Scottsdale and Paradise Valley and have tax advantages.

A lease rate of $25 per square foot in Scottsdale includes $3 for taxes, he said, adding that on Salt River, a tenant might save 20 percent, or 60 cents per square foot.

“I can tell you a lot of deals get made or broken over 60 cents per square foot,” Brown said.

First tenants move in

The developers of Pima Center, which include Opus West, have completed or are close to finishing about 700,000 square feet of space.

Riverwalk Arizona, which opened the Arizona Design Center last fall, announced last week that it will build a pair of 150,000-square-foot buildings for the Medicis Pharmaceutical Group. The first is due in 2008.

The Alter Group expects to complete two three-story office buildings in the first quarter of 2007. It is close to signing tenants for the buildings, which will total 164,000 square feet, said Kurt Rosene, the Alter Group senior vice president for national development.

Both Rosene and Brown say that the Salt River community is one of the best-situated tribes in the country economically because of its proximity to Scottsdale.

“We’re talking about one of the top five office markets in the country,” Rosene said.
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