California developer acquires former State Farm office Article originally posted on Phoenix Business Journal on April 22, 2026 A California developer has acquired a 25-acre office property in Tempe that it plans to redevelop into a hub for advanced manufacturing jobs. Panattoni Development Company Inc. closed on the $37.5 million deal April 15, according to Tempe-based real estate database Vizzda. The property at 2750 S. Priest Drive is off Interstate 10 and within the Broadway Curve area — one of the busiest highway sections in Arizona, according to the Arizona Department of Transportation. Newmark brokers represented the seller, JDM Partners, and they include Erin McClure, Chris Marchildon, Gary Cornish and Nico Burgarello. Panattoni represented itself in the deal. Panattoni’s leasing brokers are Steve Larsen and Jason Moore of JLL. Panattoni has already started the demolition process by decommissioning utility lines, and has plans to tear down the current structures May 7, Phoenix Partner John DiVall told the Business Journal. Demolition will take about two months to complete, and the buildings will be constructed in approximately 14 months, he said. The company’s vision is to build a pair of one-story industrial buildings; about 354,837 square feet of warehouse, industrial and manufacturing space; 88,714 square feet of office space; and 373 parking spaces within a parking courtyard. DiVall said there will be five office buildings and two three-story parking structures. The current three-story parking garage off Fairmont Drive will remain. “This is going to be the first industrial park in Phoenix that will have structured parking,” he said. The general contractor for the redevelopment is Wespac Construction, and the architect is Ware Malcomb. The transaction closed roughly two months after the Tempe City Council on Feb. 5 unanimously approved a resolution for a general plan land use and residential map amendment, and also adopted an ordinance returning the zoning for the site to a general industrial district. Prior to that, the site was previously approved by Council in 2023 to be rezoned to mixed-use to allow for the construction of a five-story residential development with 566 units. But those plans fell through, so the zoning needed to be changed for the new project, according to a letter from Panattoni. As for potential tenants, DiVall said Panattoni is having conversations with two prospects, though no one has been officially confirmed. The company anticipates accommodating four to five tenants who they believe will be advanced manufacturing-type users, DiVall said. One reason these kinds of users are expected is because of the site’s location, which is between TSMC and Intel, near the Broadway Curve, Arizona State University and Phoenix Sky Harbor International Airport, he said. “It won’t just be a couple of warehouse users here. We think there will be real jobs in them, advanced manufacturing type jobs,” he said. Find Complete Article Here: https://www.bizjournals.com/phoenix/news/2026/04/22/developer-tempe-office-industrial.html