Could State Farm, development partners sell massive Marina Heights campus in Tempe?

Article originally posted on on January 22, 2016

Could Arizona’s largest office development be up for sale?

A report from one of our sister papers, the Dallas Business Journal, says State Farm Insurance Co. wants to sell its newly completed $800 million regional operations campus in Texas.

Illinois-based State Farm could do the same for its campuses in Atlanta and Tempe, according to the same report.

State Farm would sell the campuses for the right price, and strike a leaseback deal to still occupy the space.

All that means the expansive Marina Heights development on Tempe Town Lake could be hitting the market if State Farm and its development partners opt for a leaseback path.

The Tempe development is owned by a joint venture involving State Farm,Sunbelt Holdings and Ryan Cos. The latter two are building out the campus, which could total 2.2 million square feet, for the insurance company.

State Farm spokesman Victor Hugo Rodriguez said there isn’t a for sale sign hanging from the Tempe campus across from Sun Devil Stadium off Rio Salado Parkway.

“We’re not going to speculate on any sale leaseback arrangement for Marina Heights. We continue to use a flexible real estate strategy so that we can make adjustments to respond to customers’ changing needs,” Rodriguez said.

State Farm is consolidating Arizona operations at the Marina Heights development and is hiring new employees.

“Our plan is to hire 1,000 new employees in the first half of 2016 and ultimately Marina Heights will house up to 8,000 employees,” Rodriguez said.

A Matt’s Big Breakfast, Mountainside Fitness and Starbucks are slated to open up also the State Farm campus in Tempe.