ARIZONA NEWS

Carvana won’t take occupancy of new Tempe office campus under construction

Jan 22, 2024, 4:05 AM

The Tempe Vale office campus, located at Rio Salado Parkway and Priest Drive, is now being marketed...

The Tempe Vale office campus, located at Rio Salado Parkway and Priest Drive, is now being marketed to new tenants. Originally planned for Carvana, the used car retailer is not going to take occupancy of the space. (Jim Poulin/Phoenix Business Journal)

(Jim Poulin/Phoenix Business Journal)

Two new office buildings under construction in Tempe, one planned for Carvana Co., will not be occupied by the used car retailer after all.

Instead, those two buildings at 1295 and 1325 W. Rio Salado Pkwy — along with a nearly 50,000-square-foot existing building once occupied by Carvana (NYSE: CYNA) — are now being marketed to new tenants under the campus name “Tempe Vale.” The campus is being developed by Verde Investments, which is owned by Valley businessman Ernest Garcia II, the biggest shareholder of Carvana Co. and the wealthiest person in the state. Verde is also looking to redevelop the Fiesta Mall in Mesa, where it has plans for a large mixed-use development.

Newmark Group’s Tom Adelson and Erin McClure are the listing brokers for Tempe Vale and have been marketing the campus for Verde since the fall, Adelson said. The two are also marketing the 292,000 square feet Carvana is looking to sublease at the Marina Heights campus in Tempe, at 500 E. Rio Salado Parkway. Carvana maintains its headquarters at the Marina Heights campus.

A Carvana spokesperson didn’t address questions about the company’s decision-making timeline or any potential financial repercussions for not going through with the occupancy.

This story is posted in partnership with Phoenix Business Journal. Click to read the full story.

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Carvana won’t take occupancy of new Tempe office campus under construction