Construction progressing on third office building at SkySong.
Edward Gately/The Republic
By Edward Gately
The Republic | azcentral.com
Tue Jan 21, 2014 11:31 AM
The new year is shaping up to be a big one for SkySong, the Arizona State University Scottsdale Innovation Center, on the McDowell Road corridor.
Construction is progressing on SkySong III, a 145,000-square-foot building that will be located along SkySong Boulevard, just southwest of the complex’s signature shade structure. The $32 million building will be ready for occupancy in August.
In addition, SkySong VI, also four stories, is expected to be under construction before the end of the year.
More than 1,000 employees and 50 companies are housed on the SkySong property, at the southeastern corner of McDowell and Scottsdale roads. The mission of the mixed-use, 42-acre development is to be a job creator and entrepreneurial hub.
Growth also is continuing in the first two office buildings, SkySong I and II. A new tenant, LearnVest, which provides personalized online financial planning services, has leased a 5,160-square-foot space on the third floor of SkySong II. Also, two current tenants, Atom Design and Loss Prevention Networks, have expanded their offices in SkySong I.
Plaza Cos. is the master developer of SkySong, in partnership with the ASU Foundation and Scottsdale. Tucson-based Holualoa Cos. also has partnered with Plaza Cos. for the project.
“SkySong is never stagnant,” said Sharon Harper, Plaza Cos. president and CEO. “It’s always innovative. That’s really our message for 2014.”
ASU is leasing the first 11/2 floors of SkySong III, and WebFilings, a current SkySong tenant, will be expanding by taking a full floor of the new building. Plaza Cos. also will be taking office space on the first floor.
“Between the success we are seeing from a leasing standpoint and the progress of construction on new facilities, it is a very exciting time for the project as it continues to grow and evolve,” Harper said.
In addition, 128 units have been completed at SkySong Apartments as of this week. About half of the first phase, which included 74 units, has been leased, said Don Couvillion, vice president of real estate for the ASU Foundation.
The 325-unit complex will be completed in April.
“We’re right on schedule,” Couvillion said. “As we complete this, and see what the market does and the jobs created in the area, we will be looking at adding to the apartments.”
A number of people who have firms at SkySong are now living there, and a number of SkySong tenants have leased apartments to accommodate out-of-town visitors to their companies, he said.
“We also have a number of people there who work at General Dynamics, so we’re really seeing it become an amenity for the neighborhood and a desirable place to live for people who work in the neighborhood,” Couvillion said.
Also planned for this year are increased outdoor “living room” spaces for people who live and work at SkySong, as well as innovative restaurants and additional services for the neighborhood, Harper said. The additions are in response to focus groups’ input on future needs at the campus, she said.
Scottsdale is focusing on making the city more bicycle friendly, and this also will be a goal at SkySong.
“SkySong very soon will be connected to the north, south, east and west with bike paths,” Couvillion said. “We’re hoping in 2014 all of this connectivity will be in place for cyclists and the city is very excited about that.”
With the completion of SkySong III and IV, and the apartments, SkySong will have more than 900,000 square feet of development.
“We think we can deliver 800 residential units in addition to 1.2 million square feet of commercial, and it will be need driven,” Harper said.
The city has invested $81.4 million for property acquisition and infrastructure improvements for the SkySong complex.
The city will receive annual payments, starting with $139,000 this year.
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