By Philip Haldiman, Independent Newsmedia
Peoria and the Plaza Del Rio Management Corp. are a step closer to bringing a commercial office complex to a 14-acre property at the Loop 101 and Peoria Avenue.
The City Council approved a ground lease for the Peoria-based firm to develop the city-owned land.
Plaza Del Rio Management Corp. will design the parcel with the intent attract new business to the community.
The preliminary proposal includes three two-story office buildings ranging from 55,000 to 60,000 square feet. Amenities will be determined as the tenants and their requirements are negotiated with Plaza.
Sharon Harper, President & CEO of Plaza Companies, said the agreement is an opportunity to create a new economic engine in the area.
“We are proud to design and develop this new project that will have a tremendously positive economic impact,” Harper said. “This is an exceptional location for an innovative commercial development, and we are confident that the shared vision of the city of Peoria and our firm will become a reality with a successful project.”
The initial lease term is for 75 years, with two 10-year options to extend for a maximum of 95 years. The contract also includes an option to purchase the land, according to the agreement.
Rent will be 8 percent of appraised value, which is $4.88 million or $8 per square foot, capped at 12 percent with increases possible every 10 years.
In March 2016, the Economic Development Services Department hosted the city’s first investment forum to showcase available sites for new commercial, office and industrial development to increase the city’s inventory of suitable space to attract targeted industries. More than 80 investors and developers attended.
The seeds of the Plaza lease agreement began at the forum, which initiated with an agreement for the development firm to serve as the master developer for the property.
“Peoria’s Investment Forum is an example of our intentional economic development strategy to bring targeted industries and their quality jobs to Peoria residents,” said Mayor Cathy Carlat. “We are proud to see the results of the forum materialize as this well-known and highly respected organization expands their footprint in our city.”
Plaza Del Rio Management Corp. is a full-service real estate firm specializing in the development, leasing and property management of medical office and commercial office properties, technology and bioscience facilities, mixed-use properties, and senior housing communities. Most notably, Plaza developed
SkySong Center in Scottsdale and the182-acre Plaza Del Rio campus — a mixed-use project near Loop 101 and Thunderbird Road that includes medical office, senior living, commercial, retail and residential projects.
October 2016: Exclusive Negotiating Agreement between the Plaza Companies and Peoria approved.
February 2017: Updated land appraisal completed
January 2017: Conceptual site plan and development program completed
May 2017: Deal point negotiations toward a ground lease
June 2017: Peoria City Council approves ground lease with Plaza