Ryan Companies and Alidade Capital want to raze an office building in Phoenix to build a 163,000-square-foot warehouse or manufacturing plant.
The Minneapolis-based developer and Michigan-based investor have filed plans to demolish the 132,200-square-foot Red Mountain Corporate Center at 4801 East Washington Street to make room for the industrial building, the Phoenix Business Journal reported.
The joint venture plans to build the spec building, dubbed Innovate48 as a nod to its address and its home in the 48th state, near Sky Harbor International Airport.
Ryan and Alidade expect to get their demolition permit this week. The cost of the project was not disclosed.
“More top-tier manufacturing, logistics and semiconductor companies are continuing to bring their business to Arizona, which makes it an exciting time to be building a state-of-the-art industrial project a stone’s throw from Phoenix Sky Harbor International Airport,” Josh Tracy, senior vice president of real estate development for Ryan Companies, said in a statement.
“This project offers unmatched amenities and fulfills the demand for users looking for Class-A industrial opportunities in a supply-constrained area of the city.”
The gray and white building, designed by Phoenix-based Butler Design Group, is surrounded by desert landscaping, according to a rendering.
Brokers Steve Larsen, Pat Harlan, Kyle Westfall and Jason Moore of JLL hold the listing.
Alidade Capital bought the Red Mountain Corporate Center in 2018 for $21.25 million, or $169 per square foot. The now vacant two-story office building, built in 1999 on 12 acres, was once occupied by Great Hearts Arizona.
Construction of the industrial building is expected to be complete by next summer.
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Other Ryan projects in greater Phoenix include the Marina Heights office campus overlooking Tempe Town Lake, a new Phoenix campus for the Arizona Humane Society, the Confluence of Mesa-Gateway industrial park and new senior living communities, according to the Business Journal.
Developers are now working to convert office buildings across Phoenix into other uses, as market conditions change. They include apartments, industrial, data centers, self-storage and medical offices.
The Phoenix region has 23 completed or ongoing office conversion projects, containing 3.5 million square feet turned into other uses, according to CBRE Group. They include seven office-to-apartment conversions or mixed-use developments such as the stalled One Camelback project and the former Phoenix Financial Center.
— Dana Bartholomew