CapRock Partners Breaks Ground on 3.4 MSF Spec Industrial Complex in Phoenix
PHOENIX, ARIZ. — CapRock Partners has broken ground on CapRock West 202 Logistics, a 183-acre speculative industrial project in Phoenix. The eight-building, Class A industrial warehouse complex will total 3.4 million square feet.
The project will be developed in two phases. Phase I will start in November 2021, with completion and delivery anticipated by the end of 2022. The first phase will include the first five buildings, totaling approximately 2.5 million square feet.
The timeline for Phase II was not disclosed. Estimated development costs were also not released.
The project will feature buildings ranging from 228,000 to 1.1 million square feet, with clear heights between 32-feet and 40-feet. All buildings will feature dock-high and ground-level loading with secured concrete truck courts. Each of the buildings are designed with varying depths and are divisible to accommodate multiple tenants.
The project is the largest speculative industrial development in the history of Phoenix, according to CapRock. Bob O’Neill, senior vice president of acquisitions at CapRock Partners, said the CapRock West 202 Logistics project will be bigger than any other industrial project in Phoenix by more than 1 million square feet.
“Phoenix is now the fifth largest municipality in the United States, and also the fastest-growing big city,” says O’Neill. “With a majority of the Valley’s new industrial product delivering in the outer submarkets such as the northwest, CapRock Partners is proud to bring CapRock West 202 Logistics to central Phoenix, in an ideal infill location close to downtown and along a major transportation corridor.”
The project is located close to I-10 freeway and Loop 202, at the northeast corner of North 59th Avenue and West Van Buren Street. It is approximately seven miles from downtown Phoenix and 12 miles from Phoenix Sky Harbor International Airport. Nearby retail tenants include Amazon, Kroger, CVS, Target, Home Depot and Costco.
The developers chose Phoenix because of its business-friendly location near primary consumer markets and logistics hubs in Southern California, Dallas, Denver and Salt Lake City. Phoenix’s industrial market set a record of 12 million square feet in net absorption in just the first half of 2021, while in the whole year of 2020, the market absorbed 13 million square feet, according to Cushman & Wakefield.
Jon Pharris, co-founder and president of CapRock Partners, says that CapRock has added about 3.7 million square feet of industrial product in Phoenix since 2020, and the CapRock West 202 Logistics project will bring its total portfolio in the Valley to about 7.5 million square feet.
“CapRock West 202 Logistics is coming online as Phoenix holds the spotlight as one of the most preferred cities in the U.S. from a lifestyle, employment and logistics standpoint; both businesses and individuals continue to relocate to the Valley in record-setting numbers,” says Pharris.
CapRock Partners is a Newport Beach, Calif.-based industrial investment and development firm. CapRock’s recent development portfolio includes approximately 16 million square feet of Class A logistics facilities across Arizona, Nevada and California.
CapRock secured the land for the project’s development via a long-term land lease. Don MacWilliam and Payson MacWilliam of Colliers International represented CapRock Partners in the land transaction and are in charge of the project’s leasing. CCA Architects and civil engineer Kimley Horn are the development partners for the project.
— Julia Sanders