High Street developers plan hotel, office space as area continues to thrive
An aerial view of downtown Phoenix, Arizona and the surrounding urban area shot from a helicopter nearing dusk.
The owners of High Street in northeast Phoenix are eyeing expansion in an area north of Loop 101 near Desert Ridge Marketplace that continues to see major construction projects.
The owners of the mixed-use center, which includes restaurants, retail, apartments and office space, own five additional acres immediately west of the buildings and plan to build a 140-room hotel, an office building and parking garage on the site, near 56th Street and Loop 101.
They are ready to move forward on construction once companies start pre-leasing the space, Todd Gooding, principal and partner at ScanlanKemperBard, one of the owners of the center, said.
Demand will drive next phase
“We will apply for the (construction) permits within the next six months, but I don’t think we will pull the trigger until we have some leasing in place,” Gooding said.
Marriott would like to have a limited-service hotel on the site under one of their brands, which would complement the success of the J.W. Marriott Desert Ridge, Gooding said.
High Street already includes about 330,000 square feet of office space, and that space is nearly completely occupied, Gooding said. The additional building will be between 145,000 and 160,000 square feet.
Adjacent to High Street, Crown Realty and Development building CityNorth, a planned mixed-use project that will include apartments, office, retail and restaurants and public infrastructure. Some of the first developments are under construction on the site, which includes about 96 acres south of High Street.
“We are rooting for CityNorth to go as fast as they can,” Gooding said. “The more successful they are, the more successful we will be.”
South of the Loop 101, Mayo Clinic is also planning a major development on 228 acres of land it bought in late 2021. The hospital hopes to develop a biotechnology corridor on the land next to its north Phoenix campus.
The growth of commercial development in north Phoenix makes the area attractive place for businesses that want all of the nearby amenities, such as restaurants and entertainment, that High Street and nearby Desert Ridge Marketplace already offer, said John Bonnell, managing director for real estate company JLL and office leasing broker for High Street.
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North Phoenix growing fast
“High Street only gets better from here as everything else around us develops,” Bonnell said. “CityNorth, right in front of us, is going to be a big plus.”
Major business developments in north Phoenix, like Taiwan Semiconductor Manufacturing Co.’s $12 billion plant near Interstate 17 and Loop 303, are expected to bring more residents and businesses throughout north Phoenix.
Four or five companies have shown interest in the planned office building at High Street, but no leases have been signed, Bonnell said, adding that he expects to see more activity near the end of this year or early in 2023.
SOURCE: AZ Central
AUTHOR: Corina Vanek
