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SkySong Expands Ground Lease, Increases Buildable Space

By May 7, 2020November 14th, 2022No Comments

By Corina Vanek | Phoenix Business Journal

SkySong has expanded its footprint in Scottsdale with a 1.5-acre addition to its ground lease.

The parcel is currently used for parking but can now become part of the master plan of the site. Potential uses for the additional land, which can accommodate up to 120,000 square feet, include office, retail and hospitality.

The addition to the ground lease will generate approximately $3.6 million to the city, depending on the use and when the parcel will be developed. Because the development is on city-owned land, it does not pay property taxes, but instead pays rent to the city.

“This is a win-win-win for the project, the city of Scottsdale and for Arizona State University,” Don Couvillion, vice president of real estate for University Realty, a branch of ASU’s Enterprise Partners created to leverage real estate assets for the university, said in a statement. “Because the project has been so successful, it has created opportunities for us to think of ways to increase its overall impact. This transaction enables the university to have additional options in how it engages at SkySong.”

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