Source: George Oliver
Phoenix-based developer George Oliver has completed a $38.8M, two-building acquisition and will invest almost $14M in additional capital to bring a new creative office portfolio to the heart of downtown Chandler. Rebranded to The Alexander and The Johnathan, the buildings will be named after Chandler namesake Alexander Johnathan (A.J.) Chandler.
“There is a tremendous energy in downtown Chandler right now – from new tech growth and new multifamily development to its collection of experiential, highly walkable amenities,” said Curt Kremer, George Oliver Founder and Managing Partner. “We are hopeful that our new concepts, The Alexander and The Johnathan, will thrive in this kind of environment, continuing our mission of delivering highly functional office spaces with a best-in-class amenity package.”
“Downtown Chandler continues to expand and diversify and the news of this investment to modernize the largest office portfolio in our downtown couldn’t come at a better time,” said Chandler Mayor Kevin Hartke. “We’re grateful for George Oliver’s commitment to downtown Chandler’s future and their tribute to our city’s history.”
The Alexander will commence a $5M shell building transformation in the first quarter of 2020, creating a 112KSF, five story modernized office building at 25 S. Arizona Place. These renovations will improve the building from Class B to premier Class A modernized office space, enclosing a current ground floor plaza and adding shared spaces and a health-and-wellness-inspired amenity package.
Features within The Alexander will include a training center with seating for 60 people, a coffee and juice bar, hospitality-inspired lobby and lounge area, outdoor activity and game area, quiet library-themed common workspace and a billiards room. The wellness center will offer a cardio room furnished with Peloton equipment, a yoga room, private showers and an attached zen-inspired outdoor space. The improvement plan will also update major building systems such as elevators, restrooms and mechanical systems.
George Oliver purchased the 1987-built Plaza 25, once a prestigious financial center, from long-time owner and tenant First Credit Union for $16.3M. A sale-leaseback agreement will keep First Credit Union in the building under a 10-year lease, leaving the building 79 percent occupied between First Credit Union and other tenants. Vacant spaces not pre-leased during renovation will be built as move-in ready suites with a George Oliver-styled office design.
George Oliver has also purchased the adjacent, 107.5KSF, fully occupied Chandler City Center building for $22.5M from Tryperion Partners and Griffin Partners. Located at 55 N. Arizona Place, this building will be rebranded by George Oliver as The Johnathan with an almost $3M initial capital investment plan.
The rebrand will include upgrades similar to The Alexander including an updated exterior paint scheme, a new main building entry sequence, new landscaping, lobby and bathroom improvements, and mechanical upgrades to bring the building to modern efficiencies and visually tie the two buildings together as one.
JLL Executive Vice President Brian Ackerman represented First Credit Union in the sale-leaseback and helped to facilitate the purchase of Chandler City Center. JLL Managing Director John Pierson served as the leasing expert for Plaza 25.
“This project received multiple offers in a very competitive process that was supported, in part, by the confidence that all parties have in George Oliver’s reputation and track record,” said Ackerman. “Their renovations will be a game changer for how tenants use and enjoy these buildings, and will keep First Credit Union and its significant jobs in downtown Chandler.”
Surrounded by a density of office, multifamily, retail and hospitality amenities, The Alexander and The Johnathan sites have a very strong walkability score of 86 in a high-demand infill suburban office location. Each building is served by its own, adjacent parking garage with a parking ratio of approximately 6:1,000 square feet. Both buildings will also be institutionally managed by Arcadia Management, sharing a full-time building concierge and full-time building engineer.
The design and architecture for The Alexander and The Johnathan are being led by George Oliver Design. RSG Builders is the general contractor. Western Alliance Bank is the project lender. Ryan Timpani and Todd Noel of Colliers are the exclusive leasing brokers for The Alexander. Andrew Cheney and Colton Trauter at Lee & Associates are the exclusive leasing brokers for The Johnathan.
The Alexander and The Johnathan are part of a growing local portfolio of notable George Oliver projects including serving as developer of The Quad in Scottsdale and as owner and developer of CASA in Phoenix’s Uptown neighborhood and Lofts at The District in North Scottsdale.