DIV Industrial has seen the demand, and is delivering for Fortune 100 tenants that need to be accommodated in the Phoenix market. The Irvine, Calif.-based investor and developer just closed on 47 acres in Goodyear that will soon serve as the home of Sarival Business Park, a 847,988-square-foot, Class A industrial complex. At completion, the modern, LEED-certified business park will include five free-standing buildings ranging from 135,000 square feet to 235,000 square feet.
This transaction marks DIV’s first foray into the Phoenix market. Nicholas Ilagan, the firm’s co-founder and managing partner, notes there were many attributes that attracted him to this region.
“The Phoenix MSA continues to be one of the fastest-growing metros in the country,” he says. “The region is propelled by its established infrastructure, business-friendly approach, educated workforce, and accessibility to Southern California’s port markets and the Western U.S. population. Phoenix is attracting large corporations and Fortune 500 companies that are relocating or setting up new, efficient operations, such as data centers, distribution facilities and manufacturing operations.”
This includes Taiwan Semiconductor Manufacturing Company, which Ilagan notes has had a “huge boost to the local economy and stimulated employment growth.” Goodyear has also drawn in larger regional and national industrial real estate users, including Amazon, UPS, Home Depot, Macy’s-Bloomingdales, Chewy.com and others.
Situated at the southeast corner of Sarival Avenue and MC-85, Sarival Business Park will provide convenient access to the Greater Phoenix region via SR-303 and Loop 202. The park will offer prime frontage along MC-85, as well as the planned SR-30 connection. The future connection to the 202 will also provide the ability to bypass Interstate 10 allowing for increased efficiency throughout the region. The project’s location will allow corporations to reach about 14 percent of the U.S. population within a one day’s drive.
Sarival Business Park will offer high efficiency and accessibility, with each building providing 3,600 amps of power (expandable to 7,200 amps); two oversized grade level doors; up to 34 dock high doors; and high image speculative office space. Buildings 1, 2 and 3 will provide 32-foot clear heights, while Buildings 4 and 5 will provide 36-foot clear heights. All structures will have fully air conditioned warehouse space and offer ESFR sprinklers, along with ample parking.
Groundbreaking is scheduled late in first-quarter 2024, with total project completion anticipated in the first quarter of 2025. DIV Industrial’s business plan is to develop and deliver the asset with multiple potential exit strategies, including the ability to sell individual buildings to owner-users.
Ilagan believes this can provide owner-users with an opportunity that has been taken away in recent years.
“In the years leading up to the pandemic in 2020, Phoenix’s industrial real estate market became more institutional, drawing investors with large capital capabilities that ultimately pushed pricing to a prohibitive level for many owner-users that couldn’t compete to purchase the warehouses they occupied,” he explains. “The slowdown in capital markets over the past 21 months has presented a unique opportunity for many owner-users to once again find opportunities to own their real estate, and we are pleased to deliver a high-quality product that will meet their needs.”