Phased array radar systems are indispensable in many applications requiring robust sensing of the environment. To achieve sensitive target detection and accurate direction-ofarrival (DOA) estimation, a high number of receiving antenna elements is needed. The high dimension of the element level data inevitably leads to a large computational burden for the digital signal processing. This problem can be overcome by transforming the element level data into a lower dimensional beamspace. In this paper, we present a novel parameter-controlled design method to construct this transformation. If the dimension reduction is not too drastic, it jointly achieves optimal detection and DOA estimation performance. Otherwise, it meets pre-defined performance criteria by exploiting an acceptable trade-off between detection and DOA estimation performance. We propose a general design tool, which is not limited to a specific array configuration. The design tool comprises a pre-calculated set of plots, providing the radar designer an overview of possible performance for a given scenario. We describe a straightforward method to construct the corresponding transformation. Numerical studies highlight the superiority of the proposed design method.