Big Deals

AN EPICENTER OF TECHNOLOGY

By ALYSSA TUFTS

Arizona’s reputation as a technology industry leader continues to grow. In March, Intel announced a substantial expansion of its Arizona-based manufacturing capacity with a $20 billion investment, which includes two new semiconductor fabrication facilities and the creation of 3,000 new high-tech, high-wage jobs and 3,000 construction positions; it will also support about 15,000 additional indirect jobs in the community.

According to Sandra Watson, president and CEO of the Arizona Commerce Authority, Intel’s decision to open two new semiconductor factories is transformational in adding new jobs. “These workers will live in our communities, shop at local small businesses and pay Arizona taxes," she says. "This expansion will also support thousands of jobs in construction and through suppliers and other industries.”

In addition, Watson notes that Intel’s development represents the largest private sector investment in state history. She explains, “To put that into perspective, this expansion nearly equals what Intel has invested in the state since 1980. Long-term ventures like this have a ripple effect throughout our economy and will have a positive impact on areas such as K-12 education, infrastructure and public safety for generations to come."

The investment is significant and will add to Intel’s existing operations with about 12,000 employees between two Chandler campuses, and add value to Chandler’s Price Road Corridor, which includes Northrop Grumman and Microchip. “With this investment, Intel is significantly expanding its footprint in Chandler,” Watson says. “When completed, Intel will employ nearly 16,000 Arizonans and will have invested more than $50 billion in our state. Intel will also grow the number of semiconductor fabs they operate in the state from four to six.”

Micah Miranda, economic development director for the City of Chandler, says the expansion represents a huge opportunity for both the city and the state. “It’s a long-term project within an industry that’s producing something locally and shipping those goods around the world. The deal is also important due to the economic multiplier it has; so for every one Intel job created through this project, it will create three additional jobs, and a number of other businesses are supported by the activity taking place.”

In addition, the large number of construction workers who will build the new facilities also will add to the economic activity in Chandler during that time. “The tradespeople will stay at our hotels, dine at our restaurants and shop at our shopping centers, so those individuals and their spending will help support the businesses most troubled right now due to COVID-19,” Miranda remarks. Intel is more than just Chandler’s largest employer. It also prioritizes community through charitable giving. Since 2015, the company and it’s philanthropic arm, the Intel Foundation, have given more than $35 million to support Arizona schools and nonprofits, and thousands of local employees have contributed more than 750,000 volunteer hours.

“Intel has not only been a tremendous economic partner, it has been an exemplary corporate citizen as

Intel’s $20B investment will add thousands of new jobs

Micah Miranda Sandra Watson

well,” Watson says. “Over the years, the company and its employees have been leaders in supporting local schools and students, promoting healthy forests and rivers, providing pandemic relief, volunteering and more.”

Miranda adds that Intel is also a major advocate of citywide initiatives with the municipal government and the city’s nonprofit partners. “Intel’s support is not just measured in dollars, it’s also measured in time. The company is an active participant in our Science and Technology Festival, and its employees serve on community boards. Part of the corporate culture is community involvement.”

The Arizona Commerce Authority (ACA) is the state’s leading economic development organization and is focused on key industries, including technology and innovation, to grow Arizona’s existing businesses and create new ones. “Over the last 10 years, the ACA has been laser-focused on making Arizona the leading state for technology and innovation,” Watson says. “As chair of the ACA, Gov. Doug Ducey has been our state’s chief spokesperson and promoter in creating an environment that allows innovation to thrive. We see the results in the exciting new businesses relocating to Arizona; in

the companies, such as Intel, that are expanding here; and in the boom of our start-up community, which is attracting worldwide attention for its success. There’s more work to do, and we remain as focused as ever on making Arizona an international center of excellence for nextgeneration technologies.” Intel is one of the world’s biggest semiconductor companies, with six wafer fabrication sites worldwide, including its facilities in Chandler. “Across the world, we’re seeing unprecedented demand for high-tech products that are powered by semiconductors. Intel is uniquely positioned to meet that demand, and a big part of its strategy is centered in Arizona,” Watson notes. “Just last year, Intel’s Fab 42 became operational in Arizona, making it the company’s largest chip-making factory in the U.S.; it also is said to be the most advanced in the world. These assets, as well as Intel’s expansion, put Arizona at the epicenter of the technology innovations happening globally.” Miranda says that with a major capital investment, companies have a lot of location choices, so for Intel to continue to choose Chandler is an honor. “The relationship that the city and Intel have is very intertwined — everything from roadways to utility infrastructure. We collaborated during the design and construction processes of the current facility to ensure that we are wellpositioned on the Intel roadmap for future capital investments.”

He adds, “The recent announcement signifies to the private sector that Chandler is not only capable of supporting our largest employer, but because of that support, Intel is comfortable continuing to invest in our area, which the City of Chandler is really proud of.”

The new facilities speak to Arizona’s strength as a technology industry leader. “As a multinational company, Intel could have chosen any place in the world to build its new advanced factories,” Watson points out. “It chose Arizona because of our robust innovation ecosystem, world-class university research enterprise, and highly-skilled and growing workforce. Not only does Intel’s announcement add to Arizona’s already booming tech scene, it sends a signal around the world that our state is the place to be for advanced manufacturing and emerging technologies.”

Another benefit to the city and state is the employees who relocate to Chandler, creating a diverse workforce. “This multifacted community is attractive to other businesses we’re working with, so it adds to the economic success and the cultural dynamism of Chandler,” Miranda says.

Watson comments, “Major investments like this attract additional talent and innovators to the state who add to Arizona’s high-tech ecosystem. As technology companies look to expand or relocate, they want to go where there is already a skilled workforce and robust supply chain that can meet their needs, now and in the future.

“Last year, Arizona was a Top 10 state for tech employment gain, and it is expected to have the third-fastest tech occupation growth over the next decade,” she continues. “Which means more technology companies will be looking at Arizona for their next big investment, and we remain focused on continuing to promote Arizona’s unbeatable value proposition for nextgeneration technologies.”

FAB 42: Intel’s newest leading-edge manufacturing facility is Fab 42 in Chandler. Fab 42 connects to three other Intel fabrication plants, making the site the company’s first megafactory network. It manufactures the latest generation of groundbreaking products that will power hundreds of millions of computing devices worldwide.

MULTIFAMILY/SALES

$178.5M | DEER VALLEY VILLAGE APARTMENTS 3010 W. Yorkshire Dr. and 19645 N. 31st Ave., Phoenix BUYER: Millburn and Company SELLER: Priderock Capital Partners BROKER: NA

$129.5M | ALMERIA AT OCOTILLO 2470 W. Edgewater Way, Chandler BUYER: Sentinel Real Estate Corp. SELLER: Passco Companies BROKER: NA

$117M | MONTREUX APARTMENTS 5550 E. Deer Valley Drive, Phoenix BUYER: Pacific Development Partners SELLER: Statesman Group of Companies BROKER: NA $84.5M | RESIDENCES AT UNIVERSITY CENTER 1260 E. University Drive, Tempe BUYER: Ideal Capital Group SELLER: DiNapoli Capital Partners BROKER: NA

$65.8M | TIERRA DEL SOL APARTMENTS 1711 S. Extension Road, Mesa BUYER: Aukum Management SELLER: Bridge Investment Group Partners BROKER: NA

RETAIL/SALES

$126.5M | 1,646,821 SF PARADISE VALLEY MALL 12820 N. Tatum Blvd., Paradise Valley BUYER: RED Development SELLER: Macerich BROKER: NA

$34M | 127,100 SF LIFE TIME FITNESS CENTER 24700 N. 67th Ave., Peoria BUYER: Spirit Realty Capital SELLER: Life Time Fitness BROKER: NA

$27.75M | 168,178 SF SCOTTSDALE TOWNE CENTER 15454-15784 N. Frank Lloyd Wright Blvd., Scottsdale BUYER: Mega Furniture SELLER: Vestar BROKER: NA $27.5M | 100,379 SF COLLEGE PARK CENTER Camelback Road, Phoenix BUYER: Tierra Partners SELLER: 35 College Park LLC BROKER: NA

$26.15M | 107,508 SF HAYDEN STATION

390 N. Mill Ave., Tempe BUYER: 390 N. Mill Ave., Tempe SELLER: YAM Properties BROKER: Cushman & Wakefield

OFFICE/SALES

$110M | 364,521 SF PETSMART HEADQUARTERS 19601 N. 27th Ave., Phoenix BUYER: BPM Real Estate Group SELLER: VEREIT BROKER: CBRE

$39.5M | 306,571 SF MESA FINANCIAL PLAZA 1201 S. Alma School Rd., Mesa BUYER: CAMCO Investment Group SELLER: Barker Pacific Group BROKER: CBRE

$34M | 151,943 SF RAINTREE CORPORATE CENTER I 15333 N. Pima Rd., Scottsdale BUYER: Held Properties SELLER: ViaWest Group BROKER: NA

$23.7M | 50,513 SF

1675 E. Melrose St., Gilbert BUYER: Flagler Investment Property Group SELLER: OrthoArizona BROKER: NA

$18.8M | 36,846 SF RETINAL CONSULTANTS OF ARIZONA 15401 N. 29th Ave., Phoenix BUYER: Artemis Real Estate Partners SELLER: Montecito Medical Real Estate BROKER: NA

LAND/SALES INDUSTRIAL/SALES

$25.6M | 163.72 AC SYCAMORE FARMS PARCELS 1 & 2 SR 303 and West Cactus Road, Surprise BUYER: Taylor Morrison SELLER: Moore Ranches BROKER: Nathan & Associates

$21.7M | 709 AC

Arizona Farms and Felix roads, Florence BUYER: Langley Properties SELLER: Sunbelt Holdings BROKER: Nathan & Associates

$20M | 16.54 AC BANYAN NORTH TEMPE North Miller and East Curry roads, Tempe BUYER: Milhaus SELLER: Rush Auto Recyclers BROKER: NA

$19.5M | 74.43 AC THE CUBES AT GLENDALE Reems Road and Northern Avenue, Litchfield Park BUYER: Claycorp/CRG SELLER: Claycorp/CRG BROKER: NA

$17.7M | 74.05 AC E202 (PROPOSED) SR 202 and Elliot Road, Mesa BUYER: Marwest Capital SELLER: EdgeConnex BROKER: NA

$91M | 470,400 SF LOTUS PROJECT

6511, 6565, 6615 and 6677 W. Frye Rd., Chandler BUYER: LaSalle Investment Management SELLER: Conor Commercial Real Estate BROKER: Cushman & Wakefield

$85.35M | 528,789 SF 7340 S. Kyrene Rd., Tempe BUYER: Investcorp SELLER: BKM Capital Partners BROKER: NA

$35.5M | 417,600 SF 670 S. 91st Ave., Tolleson BUYER: Nearon SELLER: CTR Investors BROKER: NA

$30.88M | 224,986 SF KOLL COTTON CENTER 4050 E. Cotton Center Blvd., Phoenix BUYER: TerraCap SELLER: BKM Capital Partners BROKER: NA

$27.5M | 223,190 SF SEVENTY5 BUSINESS PARK 7150 W. Roosevelt Ave., Phoenix BUYER: Baron Properties SELLER: Rialto Capital BROKER: Cushman & Wakefield