In May 2019, Capital Hall Partners (headquartered in Los Angeles, CA) closed its first Qualified Opportunity Zone (QOZ) transaction: the purchase of a 50,000-square foot zoned General Industrial District (GID) building, situated on 4.32 acres in southwest Tempe, AZ with a $10MM total capitalization.
As the first QOZ project in the Tempe area and specifically within this census tract, the opportunity offers an exciting path for addressing a series of needs in a rapidly growing region. The project, being rebranded as “The Hub,” is well-suited for redevelopment based on its prominent location, tall ceilings, building infrastructure, and a large site that can accommodate parking requirements requested by market users.
The project’s mission is to stimulate new economic development and redevelopment of Tempe and surrounding areas, while incorporating sustainable design and construction into an attractive facility.
Capital Hall Partners will redevelop the property by transforming the existing industrial building into a creative office environment. This will include a complete renovation of the exterior, featuring new doors and windows arranged to allow natural light into the interior, while offsetting the heat gain from direct sun. A shade screen structure will wrap the building to shadow the windows and create exterior patios around the perimeter.
The area beneath the shade screen structure, known as the ‘The Commons,’ is located on the north side of the building and serves as the primary entry. It will be covered with photovoltaic panels arranged in a pattern to provide a balance of light and shadow. Engineers estimate the solar array will generate enough power to off-set utility use by up to 75%.
The Commons will feature three primary zones: ‘The Plaza,’ ‘The Lounge,’ and ‘The Lawn.’ The Plaza will serve as the main point of entry to the building and features modular pavers and a variety of low-water-use lush plants. The Lounge serves as the exterior dining and conference room, and The Lawn will feature synthetic turf to soften the space and cool the building and plaza environment.
The building interiors will be reconstructed using high efficiency HVAC, electrical, and plumbing systems. The interior architecture will be tenant dependent, but will feature open ceilings highlighting the existing building structure.
Finally, the efficiently redesigned parking area will accommodate nearly 300 vehicles and will feature shade trees, modular pavers, asphalt drives, and a pervious surface parking area intended to reduce the heat island and allow for more adequate storm-water management.
Design plans have been submitted to the City of Tempe with construction scheduled in the third quarter of 2019, with exterior construction estimated to be completed by the second quarter of 2020. The business plan is to lease the building to a single user or multiple tenants.