Our acquisition of this Class A office project provides our investors with strong cash flow and upside resulting from the quality of the property, a rapidly improving location and the opportunity to invest in the development of future phases of the project. Our partnership with the Arizona State University Foundation in this investment will allow us to leverage the economic power of the largest university in the United States to drive continued tenant demand for the property.
SkySong, the ASU Scottsdale Innovation Center, is a business incubator and accelerator for Arizona State University. Envisioned as a global business community with links to technology, entrepreneurship, innovation, and education, SkySong has attracted companies ranging from known brands to startups. Companies such as Jobing.com, Ticketmaster, and Yodle have come to SkySong because of its strong connection to Arizona State University as well as the exceptional facilities and Scottsdale location. Anchored by an iconic shade structure designed by Pei Cobb Freed & Partners, SkySong Innovation Park is a 42-acre site that will eventually consist of 1.2 million square feet of office, research, retail space, a hotel/conference center, and multi-family residential units. The City of Scottsdale has invested $81.4 million in the development of SkySong Innovation Park.
SkySong 1 and 2 is a 290,000 sq.ft., two-building, Class A, LEED-certified office property built in 2007-2008. In spite of the recession, SkySong leased up to 97% occupancy, acting as a magnet for entrepreneurial and high-tech companies, and demonstrating the impact of Arizona State University’s presence at, and commitment to, the project. SkySong 1 and 2 are the first commercial developments in SkySong Innovation Park and is the largest privately-funded LEED-certified project in Arizona, receiving a LEED Silver designation from the United States Green Building Council.
SkySong 3 is a 140,000 sq.ft., Class A, LEED-certified office building currently under construction. SkySong 3 is 65% pre-leased. SkySong 3 was designed by award winning architectural firm Butler Design Group and is being constructed by DPR Construction, a national builder that specializes in sustainable projects. Construction is expected to be completed in the third quarter of 2014.