APS BioGroup acquired 2235 S. Central Ave. in Phoenix.
Cushman & Wakefield industrial broker Will Strong arranged the acquisition on behalf of the buyer. The seller, The Peiterson Limited Partnership of Las Vegas, was represented in-house by Loren Peiterson.
For APS BioGroup, the acquisition marks a relocation of its headquarters and expansion of its operations within Phoenix. APS BioGroup is a manufacturer of health products and the world’s largest producer of colostrum products.
“As the company continues to grow, APS BioGroup required a substantial greater amount of space for its administrative and manufacturing operations,” Strong said. “With this transaction, the company went from leasing a 58,000 SF space to owning its own 80,000 SF facility – relocating this Arizona based company’s headquarters. Prior to moving into its new headquarters building, APS BioGroup plans to construct a 8,000 SF addition to the building. So, the total size will be 88,000 SF.
“The site selection process encompassed nearly a dozen buildings along the I-10 corridor in Phoenix,” said Strong. “APS BioGroup ultimately selected this building because of its functionality, corporate image and location.”
The company’s new home base is just off I-17 and Central Avenue in the heart of Phoenix’s industrial market. Situated on 4.5 acres, “the building is accessible to every major freeway, has great visibility, and is next to Phoenix Sky Harbor International Airport,” Strong said.
The timing of the acquisition was fortuitous.
“There are not as many buildings available now as before,” said Strong. “Activity has been increasing, the market has been getting tighter, and this was an opportunity to purchase a great building at a good price as conditions start to improve.”
Cushman & Wakefield’s second quarter industrial market statistics show investment sales transactions currently 48% higher with 53.7% more square footage compared to a year ago. Leasing activity has rebounded as well, with the market showing three times the absorption in the second quarter of 2012 over the first quarter.
“User and investment sales volume has been consistently growing through the first two quarters of the year,” Strong said.