Western Real Estate Business magazine covers the multifamily, retail, office, healthcare, industrial and hospitality sectors in the Western United States.
Issue link: https://westernrealestatebusiness.epubxp.com/i/818922
www.REBusinessOnline.com Western Real Estate Business • May 2017 • 59 RIVULON CONTINUES EXPANSION Mixed-use project in growing Gilbert, Arizona, sees new development. By Randall Shearin I n Gilbert, Arizona — one of the fastest-growing towns in the na- tion — Nationwide Realty Inves- tors recently broke ground on two 60,000-square-foot spec buildings at Rivulon, a 250-acre mixed-use devel- opment at the corner of Gilbert Road and AZ 202 just southeast of metro- politan Phoenix. Nationwide Realty Investors, which broke ground on Rivulon in late 2014, has delivered and leased nearly 300,000 square feet of retail and office space in the community. When fully complete, the $750 mil- lion mixed-use project will include approximately three million square feet of Class A office and approxi- mately 250,000 square feet of retail, restaurant and hotel uses. One of the high profile retailers that opened at Rivulon last year is Gilbert's first Mercedes-Benz dealer- ship. The luxury dealership is located on a highly visible 7-acre parcel along Gilbert Road. Shortly after that suc- cessful opening, Sauce Pizza & Wine, Jersey Mike's Subs, Yogi's Grill Teri- yaki & Roll and an Isagenix retail store opened in Rivulon's first retail building. Grabbagreen, a health food, fast-casual restaurant offering pri- marily organic, locally sourced foods that features grain and green-based bowls and fresh pressed juices, which opened mid-march 2017. Serving as an anchor to Rivu- lon's early office development, health and wellness leader Isagenix moved its world headquarters to a 150,000-square-foot single-tenant office building in the community last year, joining an already opened 45,000-square-foot LA Fitness. Adja- cent to the Isagenix headquarters is a new four-story, 125,000-square-foot office building anchored by Merrill Lynch, Blackstone-owned Finance of America Mortgage and AZ Business Bank Co-Biz. "The overall quality of the com- munity and Nationwide Realty In- vestor 's master planned approach to development is consistent with the experience we strive to provide to both our clients and our referral part- ner network," said Finance of Amer- ica Mortgage Branch Manager, Ron Crawford. "This location and Rivu- lon's growing amenities continue to play a role in significantly enhanc- ing our lending opportunities in the Southeast Valley." With no other project like Rivulon in the region, there is reason to believe that leasing — particularly office leas- ing — will continue to move forward at a brisk pace. Upon completion, Riv- ulon's office component will nearly double Gilbert's current inventory of 3.3 million square feet of space, and represents the market's first critical mass of Class A office. Civic officials have cited Rivulon's influence as an economic game-changer for the town, which has limited space dedicated for commercial development. Gilbert Town Manager Patrick Banger says that the project has the potential to fundamentally alter the economic dynamics of the town. "At 72 square miles, Gilbert is a relative- ly compact town," he explains. "The space we've set aside for commer- cial activity is fairly modest, so civic leaders are very conscious of the fact that we have to make the most of it — to ensure that the decisions we make today set us up for long-term sustainability. Rivulon is an ideal fit for us, and is a critical piece of that strategy." In addition to the two new spec office buildings underway, the next phase of development for Rivulon includes a creative and flexible office neighborhood along the northern bor- der of the community. Nationwide Realty Investors is also exploring a number of options for a six- to nine- acre hotel site within the project. "We have tremendous energy and momentum," said Nationwide Re- alty Investors President and COO Brian J. Ellis. "The market recognizes that there is no other community like Rivulon in the East Valley and we are taking full advantage of that opportu- nity with both our development and leasing efforts." n Nationwide Realty Investors' Rivulon in Gilbert, Ariz. Rivulon has delivered nearly 300,000 square feet of retail and office space.