National MarketingReimagined former HQ in Scottsdale inks new tenants
Phoenix Business Journal, Nov. 15, 2022
Nearly three years after the building traded hands, the Ilume Innovation Center in north Scottsdale is starting to fill out its revamped space. The building, which was the former Henkel’s North American headquarters, at 19001 N. Scottsdale Road, had a layout conducive for just one user when Stockdale Capital Partners acquired the space in December 2019 for $65 million.
Transwestern said its brokerage team of Mark Stratz, Vince Femiano and Scott Baumgarten was tasked with understanding what it had to work with within the building and how to broker a multi-tenant experience while navigating the early stages of the Covid-19pandemic’s disruption on business.
“At the time, over the first year-plus of ownership, the world was essentially on a lockdown mentality,” Stratz said. “But what we were watching in more established life science markets like San Diego, San Francisco and Boston, you were seeing tremendous growth and activity in life science markets.”
While Scottsdale, Tempe and Phoenix aren’t there yet as a major life science player like those cities, Stratz said the market could emerge as one. He cited the Translational Genomics Research Institute campus, the Biodesign Institute at Arizona State University and the Mayo Clinic as anchors for incubating workforce, research, development and spin-off companies. Stratz said because of its proximity to Mayo Clinic specifically, Ilume is in a good position to capitalize on the momentum of the market. Mayo Clinic purchased 228 acres adjacent to its north Phoenix campus in December 2021.
With that in mind, Stratz said his team is pursuing research-based tenants. He said his team has fielded a lot of requests for leases ranging from 200 to 500 square feet, and are looking for a way to sign an incubator to house those small companies.
“Our market is making strides and headways,” Stratz said of life science in Phoenix. “Thinking through the emerging side of the market, the attributes of the building and the momentum of life sciences across the country and world, Stockdale Capital and Transwestern saw the opportunity to capitalize on that and participate in the life sciences market.”
In December 2021, CBRE Group Inc, revealed a study that metro Phoenix’s life sciences employment grew 8.5%, between 2019 and 2020, the highest total job growth of all markets studied. The metro ended the year with about 22,000 life sciences jobs.
Ilume Innovation Center’s common areas and main lobby were renovated in trying to market for life science tenants. So far, leases for about 130,000 square feet of the 371,937 square feet at the building have been signed, according to Transwestern. The firm recently brokered three deals of nearly 24,000 square feet:
- Vidium Animal Health, which provides diagnostic tests to veterinary oncologists, general practitioners and pet parents, signed a new lease for 5,126 square feet of office and wet laboratory space on the second floor of Ilume. Paul Rambeau and Kevin Lange at Reveal Concepts were the tenant representative brokers.
- Nu Planet, whose technology will supply rare isotopes to the pharmaceutical industry, signed a new lease for 4,022 square feet of research and development and office space on the building’s first floor. Nathan Pancrazi at Keyser was the tenant representative broker.
- A chemical research company signed a new lease for 14,986 square feet of wet laboratory and office space on Ilume’s first floor. Transwestern declined to name the tenant that’s taking the space.
Both the third and fourth floors are traditional office spaces, Stratz said Transwestern is in talks with a user to take the entire third floor which totals nearly 87,000 square feet, he said.
Traditionally, the higher up you go in a building, the harder it is to accommodate life science users because it’s more difficult to bring water to the higher levels, which is why Ilume Innovation Center has dedicated office space on its third and fourth floors, Stratz said.
Building amenities include a 1.5-acre rooftop park, a fully equipped fitness center, a 110-person auditorium, meeting space and wet lab space. The building has MEP and HVAC systems designed to support life sciences tenants.
CommonSpirit Health signed a lease at Ilume Innovation Center in September 2020.
“Ilume is the home to many companies that are leading innovation and change in their respective industries,” said Andrew Saba, managing director of Stockdale Capital Partners, in a statement. “We are proud to create the environment at Ilume where tomorrow’s technologies are being developed and tested. We welcome these three companies to our growing tenant roster.”
Ilume Innovation Center is located within the Scottsdale Airpark submarket, which has been a top office leasing performer in the Valley over the past year.
“The Scottsdale Airpark is one of the primary office hubs in the Valley. With 14 million square of space, the submarket has the second largest office inventory in metro Phoenix,” said Connor Devereux, director of market analytics for Phoenix at CoStar Group. “Unlike other areas which have seen a slowdown in tenant demand, the Scottsdale Airpark has been one of the strongest performing office regions in The Valley, recording over 230,000 square feet of positive net absorption in the past 12 months. That measure makes it the second-best submarket in Phoenix in terms of new tenant demand, behind only the Camelback Corridor.”
At least one San Francisco company is taking more office space in the Financial District
San Francisco Business Times, Nov. 30
Even as many San Francisco companies continue to shed office space, at least one firm is expanding its footprint. Mutual fund company Parnassus Investments renewed its lease for 18,000 square feet at One Market Plaza’s Steuart Tower, real estate services firm Transwestern announced Wednesday, and took an additional 7,500 square feet in the building.
Dallas architects head to landmark Meadows Building
The Dallas Morning News, Nov. 9, 2022
A new business lease has taken a high-profile North Dallas office campus to 80% leased. Dallas’ SHM Architects has taken the top floor in the landmark Meadows Building on North Central Expressway. The historic office building is part of the 14-acre Energy Square at North Central Expressway and University Drive.
Transwestern Investment Group Hires New Chief Investment Officer
GlobeSt.com, Nov. 1, 2022
Real estate investment advisor Transwestern Investment Group has hired industry veteran Gary Jaye as executive managing director and chief investment officer. In his new position, Jaye will direct TIG’s overall investments, including the Transwestern Strategic Partners Fund series and various separate accounts. He will also lead a team of national investment professionals.
Transwestern Taps Industry Veteran for Southeast Multifamily Leadership Post
CoStar News, November 4, 2022
The Southeastern U.S. is full of mixed-use projects underway and in the works. And with the demand showing no sign of slowing, Transwestern Development has brought in industry veteran Jeff Harris to identify and complete projects across the region. Harris started last month as regional partner in Transwestern’s office in Charlotte, North Carolina, with responsibility for sourcing and executive development projects that focus on multifamily and a mix of other uses.
