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EXCLUSIVE: Brad Jannenga buys two historic buildings in downtown Phoenix Warehouse District

Jun 10, 2016

Brad and Heidi Jannenga's 5-year-old daughter Ava stands in front of 10 E. Jackson St.… more Brad Jannenga WebPT co-founder Brad Jannenga has big plans for two historic buildings he bought for $1 million in downtown Phoenix’s Warehouse District. With a passion for renovation, bringing tech companies and vitality to the Warehouse District, Jannenga bought the former Brickhouse music venue at 1 E. Jackson St. and what once housed a barbershop back in the early 1900s at 10 E. Jackson St. Brad and Heidi Jannenga's 5-year-old daughter Ava stands in front of 10 E. Jackson St.… more Brad Jannenga “I want to return the buildings back to where they were (with the planned renovations), and put what’s needed and what was historically there,” Jannenga told me in an exclusive interview. “These have been eyesores for a long time. This area represents bridge streets where it transitions from downtown to the Warehouse District, and I want to bring back that historical factor. This is also a way to beef up the area.” The 6,770-square-foot building at 1 E. Jackson will be renovated first and Jannenga has plans for up to three tech companies to move in, including his new tech startup SaaS Industries. The companies have been identified but aren’t finalized, and Jannenga said it was too early to say which tech companies would be filling the space. However, the companies are local but don’t yet have a presence downtown, he hinted. Because only minimal renovation is planned on the 1906-era building, the building should be ready in about three to six months, Jannenga said. Renovations will include removing the outside stucco, redoing the doors and windows, grinding and polishing the floors and putting in new bathrooms. “I want to keep it as a true warehouse,” Jannenga said. “I want to keep it pretty open and minimal for a big collaborative space.” The other 14,640-square-foot building at 10 E. Jackson is dilapidated and needs more work, he said. That building, originally built in 1906, with another portion added in 1946, won’t be ready for at least another nine months. With four store fronts and possibly up to five business opportunities because of an included basement, plans for that building could include a barbershop, a private karaoke booth bar, a speakeasy, a distillery and new restaurant concepts from prominent local restaurateurs, Jannenga said. Another tech company could also move in as Jannenga explores multiple possibilities with the demand for tech companies wanting to be downtown. SaaS Industries also is planned to eventually move into 10 E. Jackson, with more information announced on the new startup soon. A micro mixed-use concept is planned, similar to Fox Restaurant Concepts’ the Yard in both Phoenix and Tempe and Upward Projects’ renovated restaurants and areas around town. Jannenga bought the buildings from the Fort McDowell Yavapai Nation. The deal closed May 31. Jannenga worked with Larry Ortega , executive vice president of Colliers International, to broker the deal. The two have been working together on the project since October. Ortega represented both Fort McDowell Yavapai Nation and Jannenga. “We had multiple offers on those properties and both buildings have been vacant for seven years,” said Ortega, adding the tribe inherited the buildings as part of the failed Mortgages Limited company. “The tribe didn’t have a use for them and were paying taxes on the buildings, so they were looking for a good buyer.” Ortega has been working in the downtown area for many years, including selling the Mercado building to Arizona State University, and he called Jackson a sleepy street that needed a pick-me-up. “Jackson Street is just one of those perfect streets that will almost be completely full very shortly,” Ortega said. “While my mantra for downtown is food, fashion, music and art, I’ve been getting more high-tech companies looking at these buildings.” While some might not have the vision for renovation and keeping the integrity of the Warehouse District, Jannenga does, Ortega said. “I really enjoyed Brad’s story because he has a passion for preserving the area,” he said. “The Tribal Council was interested in that fact as well. Although it was a real estate transaction, the sideline is what is the guy going to do with the businesses. We’re just really happy that Brad was the winning bidder on that.” Jannenga also credits his best friend and local developer Tim O’Neil, a principal of Ironline Partners, for helping him. Ironline owns the 19-story Monroe Building at 111 W. Monroe St. in downtown Phoenix, home to several tech companies, creative spaces and local businesses. “My idea is to buy and keep these building as long-term family assets,” he said. “I want to make sure they are all local and relevant to what’s happening to downtown. This is my re-investment and commitment to what’s happening to the area.” Since taking a year off from WebPT, the electronic medical records software company, Jannenga handed over his president position to his wife and co-founder Heidi Jannenga . He has been busy behind the scenes touting all that downtown Phoenix has to offer, especially the Warehouse District where WebPT is renovating a historic building for a new office to open later this year. Jannenga was also recently appointed to the Arizona Technology Council board of directors and started a Phoenix software founders group to spur collaboration in the area. Hayley Ringle covers technology and startups for the Phoenix Business Journal. Brad Jannenga is the… more Provided by Brad Jannenga An aerial picture of the… more Newmark Grubb Knight Frank

Brad Jannenga Investments

1 Investments

Brad Jannenga has made 1 investments. Their latest investment was in Shelvspace as part of their Seed VC on May 5, 2015.

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Brad Jannenga Investments Activity

investments chart

Date

Round

Company

Amount

New?

Co-Investors

Sources

5/19/2015

Seed VC

Shelvspace

$1M

Yes

4

Date

5/19/2015

Round

Seed VC

Company

Shelvspace

Amount

$1M

New?

Yes

Co-Investors

Sources

4

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