MESA, ARIZ. — Teakwood Real Estate Partners has acquired a self-storage facility located at 462 S. Gilbert Road in Mesa. Terms of the transaction were not released. Westport Properties will oversee management and operation of the property under the US Storage Centers brand. The facility features 292 single-story, drive-up units, electronic gate access and 24-hour surveillance. Teakwood Real Estate Partners represented itself in the acquisition.
GLENDALE, ARIZ. — Echo Real Estate Capital and LGE Design Build, as design-build contractor, have broken ground on Echo Park 303, a two-building industrial facility situated on nearly 40 acres in Glendale. Located near the intersection of Northern Parkway and Reems Road, Echo Park 303 will feature a 455,936-square-foot facility, a 220,240-square-foot building, 743 parking spaces and gated yards for nearly 250 trailer spaces. The buildings will feature two stories of storefront window systems to allow for natural lighting in the lobbies and offices situated on the corners of the buildings. Completion of the 676,176-square-foot park is slated for third-quarter 2023.
YUMA, ARIZ. — McCarthy Building Cos. has broken ground for development of the $17.5 million Student Experience Center at Arizona Western College in Yuma. Serving more than 11,000 students, the two-story, 45,000-square-foot center will be situated on 3.5 acres. Slated to open in fall 2023, the center will feature a lecture hall, multiple instructional modalities, shared common areas, conference rooms, maker space, an eatery, game areas and a multimedia center and esports arena. The multimedia center will house the KAWC radio station and broadcast television studio with an emphasis on modern technology. Students and the public will be able to observe behind-the-scenes production through glass walls and TV monitors. The Student Experience Center will also offer a space for honors students to study and collaborate on group projects; a food pantry and clothing program for disadvantaged students; and 13,000 square feet of administrative space on the second floor. EMC2 is serving as the design architect on the project. The project team also includes Haxton Masonry, Delta Diversified Enterprises, Yuma Valley Contractors, Pacific Steel Inc. and Progressive Roofing.
GLENDALE, ARIZ. — Dallas-based Provident Realty Advisors has purchased a 16.6-acre land site at 6550 W. Orangewood Ave. in Glendale for an undisclosed price. The company plans to develop a 302,400-square-foot speculative warehouse and distribution facility on the site. Construction is slated to begin in the first half of 2023 with completion scheduled for early 2024. The building will feature 36-foot clear heights, 61 dock doors, a 185-foot truck court and 86 trailer parking spaces. Case Van Lare, Chris Martin and Cavanaugh Adams of Provident Realty Advisors provided in-house representation for the acquisition. John Werstler, Cooper Fratt and Tanner Ferrandi of CBRE will handle leasing of the development.
By Phil Breidenbach, Senior Executive Vice President, Colliers Class A landlords are answering the call from tenants for captivating workplaces. These re-imagined environments are drawing businesses to buildings and invigorating absorption in the market. Greater Phoenix office vacancy fell to 13.5 percent at mid-year, which was a 0.6 percent drop from last quarter and 0.7 percent lower than mid-year 2021. This number also sits 1.6 percent below the national average. While 287,000 square feet of new product was delivered, more than 587,000 square feet was absorbed. This is evidence the workforce is finding its way back to the office, if not full-time at least a few days a week. The refreshing surge in absorption is driven by companies coming to the best and newest buildings — redefining Class A with amenities that compel the workforce back into the office. New buildings like 100 Mill and Cavasson are two great examples. The first, 100 Mill, was completed in the second quarter and is more than 90 percent preleased. The building will feature next-level common areas and best-in-class meeting and lounge areas. The flight to quality trend has evolved into a flight to experience trend. Companies are finally coming to grips with the reality that how they …
MESA, ARIZ. — JLL Capital Markets has arranged $99 million in construction financing for the Phase I development of Sossaman Park 202, a five-building industrial project in Mesa. Totaling 828,718 square feet, the first phase will include a mix of light industrial, warehousing and distribution buildings ranging in size from 130,318 square feet to 198,782 square feet. Each of the buildings will offer two grade-level doors, between 25 to 41 dock-high doors, 50-foot by 52-foot column spacing and 32-foot clear heights throughout. Sossaman Park will be built in two phases with the second phase expected to include three additional buildings that will collectively total 722,000 square feet. A portion of the loan proceeds were used to fund the sponsor’s acquisition of the Phase II land site. The development is located on 108.9 acres at the southwest corner of Sossaman and Warner roads in the Chandler North/Gilbert submarket. Jeff Sause, Todd Sugimoto, Wyatt Strahan and Jason Carlos of JLL Capital Markets arranged a four-year, floating-rate loan for the borrower, a joint venture led by Contour. Pacific Western Bank provided the loan.
By Dave Cheatham, President, Velocity Retail Group For decades, Arizona’s housing and commercial real estate industry have benefitted and fed the state’s robust gains as population grew. Even during the pandemic, Phoenix welcomed more than 140,000 new residents fleeing more expensive, crowded coastal cities for what many deemed an improved quality of life. As we know, retail follows housing. Phoenix’s housing market has restarted, and these new markets will need retail to serve them. It has taken 15 years for retail vacancy rates to return to pre-recession levels in Phoenix. In the second quarter of 2022, the direct vacancy rate for retail properties declined to 6.7 percent. West Phoenix, Northwest Phoenix and Scottsdale are currently the strongest submarkets, drawing residents to fast growing cities and towns. I see retail expanding as residential development at the edges of the city continue, and agricultural land is transformed into subdivisions. With inflation shrinking household budgets, consumers are making intentional choices on where they drive and what they buy. Those retailers who are large-space occupiers will continue to focus on delivering value and lower prices to their customers. Shopping center development has been anemic in Phoenix in the past decade, as those that lease big …
GILBERT, ARIZ. — Orsett Properties has completed the sale of The Reserve at San Tan, a trophy-quality office property in Gilbert. West Valley Properties acquired the asset for $53.1 million. Built in 2020 on 12.8 acres, The Reserve at San Tan features 149,321 square of office space spread across two three-story multi-tenant office buildings connected by a common area tenant amenity lounge. The building offers high-end spec suites with open ceilings, creative office finishes and abundant covered surface parking. Additional features include monument signage, building signage, tenant lounges, PRESS coffee on-site and conference facilities. CJ Osbrink, Scott Scharlach and Kevin Shannon of Newmark handled the transaction. Mike Garlick, also of Newmark, assisted in the sale and was retained by the buyer to lead leasing efforts at the property.
GLENDALE, ARIZ. — Greenlight Communities has completed the sale of Cabana 99th, a multifamily community in Glendale. B&R Capital Partners and American Landmark acquired the asset for $93.5 million, or $326,923 per unit. Completed in 2022, Cabana 99th features 286 apartments with nine-foot ceilings, stainless steel appliance packages, wood-style vinyl plank flooring with carpet in the bedrooms and keyless entry systems. Select floor plans have built-in workstation desks and full-size, front-loading washers and dryers. Community amenities include a clubhouse, fitness center, outdoor fitness circuits and a resort-style swimming pool. The controlled-access, gated-entry property also offers two laundry rooms, co-working space, a parcel delivery room and covered parking. Steve Gebing and Cliff David of Institutional Property Advisors, a division of Marcus & Millichap, represented the seller and procured the buyer in the deal.
CHANDLER, ARIZ. — Berkadia Institutional Solutions has arranged the sale of 2150 Arizona South, an apartment community located at 2150 S. Arizona Ave. in Chandler. San Diego-based MG Properties acquired the asset from an undisclosed seller for $107 million. Mark Forrester, Ric Holway, Dan Cheyne and Andrew Curtis of Berkadia Phoenix represented the seller in the transaction. Charles Christensen of Berkadia Irvine secured $58 million in permanent acquisition financing for the buyer. The 10-year loan was financed through Fannie Mae. Built in 2001, 2150 Arizona South features 289 one-, two- and three-bedroom apartments with an average unit size of 994 square feet. Community amenities include two swimming pools and spas, a fitness center, clubhouse, detached garages, barbecue area, playgrounds, a theater, game room and dog park.
