TEMPE, Ariz. -- A new office development spanning more than 2 million square feet is slated to be built adjacent to Tempe Town Lake.
The City of Tempe announced on Friday that Ryan Companies US, Inc. and Sunbelt Holdings will develop a site that will feature State Farm as the primary tenant.
Owned by Arizona State University, the Marina Heights project will be the largest office development deal in the history of Arizona.
The deal, however, is subject to City Council approval of development agreement details next month.
“This is a proud day for Tempe and everyone involved,” said Tempe Mayor Mark Mitchell. “We are tremendously excited about what the addition of State Farm will mean to our community over the decades to come.”
Construction costs for Marina Heights are estimated at $600 million. Along with State Farm, the development will also include 40,000 to 60,000 square feet of retail space, including food service, coffee shops, restaurants, business services and fitness facilities.
The property will also include a 10-acre lakeside plaza that will be open to the public.
“The jobs that will be created to make this project a reality will be a tremendous boon to our economy,” said Gov. Jan Brewer. “This is a great example of how our plan to build an Arizona that is attractive to high value employers is hitting the mark.”
ASU President Michael Crow said State Farm’s decision to lease land owned by the school is a great first step to funding new and renovated sports facilities for the university.
“The Athletic Facilities District will be home to an exciting mixed-use development reflecting high quality and the best practices of sustainability," said Crow. "A high stature tenant such as State Farm will add to the luster of the district and validates its attractiveness.”