[Source: Jahna Berry and Russ Wiles, Arizona Republic] — Wachovia Corp.’s dueling suitors could have an impact on a $900 million downtown Phoenix development. The bank was in talks with Citigroup, which agreed to acquire Wachovia in a deal valued at more than $2 billion. Wells Fargo & Co. swooped in and announced a more lucrative, $15 billion merger agreement with Wachovia. That fight could have a ripple effect on the three-block CityScape project rising in downtown Phoenix. The development includes One East Washington, a 27-story office tower. Wachovia was supposed to be the anchor tenant in 2010, and planned to lease three floors.
When the Citigroup deal was announced early last week, CityScape’s developers and Wachovia said that nothing has changed — for now. “It’s too early for us to know how Arizona will be affected, but right now we’re open for business as usual,” said Aimee Worsley, a Wachovia spokeswoman in Los Angeles. “There are no plans to change the commitment to CityScape, as of today.” [Note: To read the full article, click here.]