CHANDLER, ARIZ. — ViaWest Group is developing a two-building speculative industrial park located at the southwest corner of East Willis Road and South Hamilton Street in Chandler, a southeastern suburb of Phoenix. The company plans to break ground on the 140,372-square-foot project this week. The 65,892-square-foot and 74,480-square-foot buildings will be divisible from 16,000 square feet to 35,000 square feet. The properties will feature 28-foot clear heights, ESFR sprinklers, a mix of dock-high and grade doors and a 180-foot shared concrete gated truck court. The project will complete Phase II of the AZ 202 Commerce Park. Phase I, a built-to-suit for PODS Moving and Storage, was delivered in April 2018. The second phase is slated for completion in April 2020. Andy Markham, Mike Haenel and Phil Haenel of Cushman & Wakefield are marketing the new buildings for lease. ViaWest Group will manage the properties once completed.
Arizona
GLENDALE, ARIZ. — Marcus & Millichap has arranged the sale of a flex building, located at 7326 Glen Harbor Blvd. in Glendale, a suburb of Phoenix. FM NPL Glendale LLC acquired the asset from NPL Construction Co. for $9 million in a sale-leaseback transaction. The property features 52,330 square feet of office and industrial space. NPL Construction Co. will continue to occupy the space on a net-leased basis. Jay Krew and Marty Cohan of Marcus & Millichap, along with Gregg Fox of Marc Realty, procured the buyer, while Dan Dowd of Newmark Knight Frank represented the seller. Frank Mandel of New York-based Mandel Management Co. will operate the asset.
With all the changes occurring in retail over the past decade, the industry, as a whole, is being transformed before our eyes. These shifts have impacted how new retail development is taking place throughout the Phoenix area. It is also driving a significant change to how retail developers will operate over the next decade. The operational changes are dramatically affecting the prototypes of retailers. These changes are making it necessary for some retailers to relocate from an inline space at the back of a center to an outparcel with street-front visibility. It becomes even more complicated as more and more tenants are demanding a drive-thru. Panera Bread, Chipotle and Starbucks are just a few examples of retailers that have revised their real estate requirements to accommodate a drive-thru. Many retailers are also consolidating their total number of stores or downsizing their traditional physical footprint, which is also impacting centers. Some chains have even waved the white flag and closed their business altogether. These changes are driving the design of new retail projects throughout Phoenix. While the traditional configurations of regional malls, power centers and neighborhood shopping centers will always be a staple, the retailer’s shift to be up front and …
Foundation Capital Partners, Baker Development Break Ground on 325,000 SF Industrial Project in Arizona
by Amy Works
GOODYEAR, ARIZ. — New York-based Foundation Capital Partners and Chicago-based Baker Development Corp. have broken ground on VB/143, a two-building, Class A industrial project in Goodyear. Situated within a foreign trade zone magnet site, the project is slated for completion by fourth-quarter 2019. VB/143 will feature a 213,000-square-foot, cross-docked building and a 112,000-square-foot, rear-loading building. The project will offer divisibility down to 30,000 square feet and includes modern amenities, such as 36-foot clear heights, secured concrete truck courts, insulated dock doors, energy-efficient clerestory windows, robust power, trailer drops, public transportation and outdoor employee amenity spaces. The property will be located at the southeast and southwest corners of 143rd Avenue and Van Buren Street. The project team includes Layton Construction Co. as general contractor and Butler Design Group as architect. The project is situated within Goodyear Gateway South, a Class A, master-planned industrial park, less than one mile from a full interchange at Interstate 10 and Bullard Avenue, just north of Phoenix Goodyear Airport. The joint-venture developers have named Anthony Lydon, Marc Hertzberg and Riley Gilbert of JLL as the project’s exclusive leasing agents.
PHOENIX — Trillium Residential has completed the disposition of Trillium 44, a multifamily property located at 111 N. Dupont Circle in central Phoenix. An affiliate of ConAm Group acquired the asset for $56 million. The four-story apartment community features 297 units, a swimming pool area with private cabanas, grilling area, resident sports lounge, wine storage room, cybercafé, fitness center, movie theater, dog park and multiple courtyards. Tyler Anderson, Sean Cunningham, Asher Gunter and Matt Pesch of CBRE’s Phoenix Multifamily Institutional Properties represented the seller in the deal.
TUCSON, ARIZ. — Seattle-based Thayer Manca Residential (TMR) has re-entered the Tucson multifamily market with its first purchase since 2000. The company acquired Palm Canyon Apartments for $40.3 million. The name of the seller was not released. Located at 2255 W. Orange Grove Road, Palm Canyon Apartments features 368 units. The low-density, value-add property was built in 1986. TMR has more than $5 million planned for renovations to the property with both interior and exterior spaces to receive resident-focused upgrades. Additionally, the property will undergo a full rebranding, and receive a revamped clubhouse, office interiors, fitness facility, two swimming pool areas, package lockers, landscaping, exterior amenities and interior unit renovations.
Multifamily rental demand in Metro Phoenix has been supported by higher education, while job growth has bolstered construction in the core and neighboring suburbs. Arizona State University has transformed the multifamily properties surrounding its large campuses in Tempe, Downtown Phoenix, Glendale and Mesa. The multifamily rental assets in the West Valley submarket have also been rejuvenated by Grand Canyon University. Thanks to these institutions and several others in the Greater Phoenix area, the growing skilled labor force has benefitted from job growth by supporting several Fortune 500 companies that have continued to increase their presence throughout the region. The recent expansions allow more graduates to remain in the Phoenix area and attract many new professionals to the market, ultimately enhancing rental demand in Phoenix and its neighboring suburbs. The rising number of residences has compressed vacancy rates in the metro as thousands of units are absorbed annually. This market demand will support the continued rise in rental prices and spur apartment development in the upcoming years. Apartment development has continued its strong pace in Phoenix. The metro is expanding its rental supply with about 8,250 units finalizing in 2019. Of this year’s deposit, roughly 2,600 units will be added to …
TEMPE, ARIZ. — Dallas-based Hall Structured Finance (HSF) has funded a new first-lien loan totaling $86.5 million to finance the construction of the full-service Westin Tempe hotel, located at 11 E. Seventh St. in Tempe. The borrower, Las Vegas-based CAI Investments, is developing the project. Construction began in March, with completion slated for second-quarter 2021. The 18-story hotel will feature 290 guest rooms, a rooftop infinity pool, poolside bar, fitness center, full-service restaurant and bar, business center, Starbucks Coffee and more than 10,000 square feet of meeting space. Aden Kuh of Silver Ridge Partners sourced the financing for the project.
PHOENIX — Black Salmon, a national commercial real estate investment firm, has purchased U.S. Bank Center in Phoenix. Local news reports an acquisition price of $93 million, while Black Salmon claims a total capitalization of more than $107 million, inclusive of other costs. The buyer engaged in a joint venture with ScanlanKemperBard Cos., a privately held real estate merchant bank, for the transaction. Centrally located at 101 N. First Ave., the 375,862-square-foot, Class A office building is located in Phoenix’s downtown submarket. Currently, the high-rise building is 83 percent leased to a variety of tenants, including U.S. Bank, WeWork and Jacobs Engineering Group. The transaction also includes a separate, seven-story parking structure that sits in a designated Opportunity Zone. Additional terms of the transaction were not released.
LITCHFIELD PARK, ARIZ. — Institutional Property Advisors (IPA), a division of Marcus & Millichap, has arranged the sale of Remington Ranch, an apartment community in Litchfield Park, a western suburb of Phoenix. BRIO Investment Group sold the asset to JB Partners for $58.5 million, or $192,434 per unit. Remington Ranch is a two-story, low-density multifamily community featuring 304 apartments. Steve Gebing and Cliff David of IPA represented the seller and procured the buyer in the deal.