A massive business park that will include class A office, retail and two hotels is coming to the southeast corner of the Loop 202 and Price Road in Chandler.
Cyburt Hall Partners LLC, a Los Angeles-based real estate investment and development firm, has purchased the 96-acre parcel bordered on the south by Willis Road from El Dorado Holdings for $27 million. CB Richard Ellis represented the buyer and seller in the sale.
The business park will be named Spectrum Chandler and all 96 acres should be developed by 2010, said Brad Hall, a partner with Cyburt Hall.
"When we look at what the Chandler submarket environment is — demographics, economics, the types of jobs and the employers who are down there — we really think that the market at this time is set for a high-end, quality business park," he said. "We would envision seeing a total buildout of probably close to 1.5 million square feet . . . and the total buildout value is probably in the $3 billion range."
Spectrum Chandler is going to be "one of the highest-end business parks in the greater Phoenix area," said Phil Cyburt, also a partner with the firm, which is not related to Spectrum development in Gilbert.
Cyburt Hall plans to design the business park, install the infrastructure including an interior road and landscaping, sell off parcels for office, retail and hotel development, and develop some speculative office space.
"We’re going to have retail along Price Road, which will be lifestyle and high-end type of retail," Cyburt said. "We’ll have all the restaurants and service amenities on about 20 acres. We’ll have two hotels that will cover about eight acres, and then the balance of the acreage will be class A office space."
The interior road and other infrastructure will be completed by the end of next year and the first buildings will be completed in 2007. Cyburt Hall is in negotiations with a retail developer to purchase the property earmarked for retail, Cyburt said.
The firm also is in discussions with developers to purchase the acreage earmarked for hotel development, he said.
"I think you’ll see probably in 2007 phase one retail, hotel and class A office being offered to the market," Hall said. "One of the reasons we’re able to sell so quickly — the retail, office and hotel product — is because of the existing pent-up demand that’s there."
Chandler and the Price Road corridor already have attracted high-tech, biotech and financial services employers, and this business park should attract even more of these types of companies, Cyburt said.
"The type of tenants you’re seeing in there is the Fortune 500 tenants who are in the marketplace," he said. "If you look at the greater Phoenix area, there’s more concentration of that on that Price corridor. And in the Chandler market there’s the highest concentration of quality jobs and class A tenants."