Services Group buys new digs - East Valley Tribune: Business

Services Group buys new digs

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Posted: Thursday, November 9, 2006 5:56 am | Updated: 3:22 pm, Fri Oct 7, 2011.

A $2.5 billion-a-year Seattle-based food service distribution company plans to relocate its corporate headquarters to Kierland, the residential-commercial-retail development west of Scottsdale Road and south of Bell Road in the north East Valley.

The 34-year-old privately owned Services Group of America moved its core staff in July from Seattle to temporary digs in north Scottsdale’s Perimeter Center.

The company spread nearly 100 employees into three buildings while offi cials searched for a permanent home.

Services Group of America will buy the under-construction Financial Center at Kierland, which has a Scottsdale mailing address despite its Phoenix location, said Charles Hall, of Grubb & Ellis/BRE Commercial, who helped arrange the purchase.

The building, which will provide plenty of room for expansion, will be renamed the SGA Corporate Center at Kierland, Hall said.

“It’s a very signifi cant company that brought key personnel from Seattle and will be growing its employment base here,” he said.

Services Group of America will own the entire five-story, 175,000-square foot building at 16100 N. 71st St

Initially the company will fi ll only the top two fl oors with its own staff, leasing the rest of the building, Hall said,

Richard Wilson, president of Development Services of America, a subsidiary of the company, said he expects to move into the new corporate headquarters in fall 2007.

A new Washington state inheritance tax sent Services Group of America founder and president Thomas Stewart looking for a new home for his business, Wilson said.

“We feel it is unfair to our business structure,” he said.

Stewart was familiar with the area because he has owned a second home in Paradise Valley for nearly three decades, Wilson said.

The 120 acres of Kierland pegged for major offi ce development are fi lling up with companies like Services Group of America who want a location convenient to services such as Kierland Commons’ abundant selection of restaurants and shops and a Westin resort, said Buzz Gosnell, president of Woodbine Southwest, Kierland’s master developer.

“We’ve run out of land,” Gosnell said.

“It’s all been either completed or under construction.”

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