Tag Archives: industrial

460wMcKellipsRd_Aerial, Lee Associates, WEB

Oregon investor plans industrial packing facility in Mesa

A 5.87-acre land parcel at 460 W. McKellips Rd. in Mesa sold for $1,400,000 to an Oregon buyer with plans to build an industrial packing facility. Price per SF was recorded at $5.47.

The utility improved, M-1 and M-2-zoned industrial parcel sits adjacent to the Loop 202 Freeway right at the full-diamond interchange at Country Club Dr.

Lee & Associates principals worked both sides of this transaction. Steve Farrell represented the seller, RDH Madison Holdings, LLC of Casa Grande while Matt McDougall represented the buyer, Dulcich Realty, LLC of Clackamas, OR.

Dulcich Realty is affiliated with the Pacific Seafood Group, one of the largest seafood companies in North America. Dulcich Realty is exploring a build-to-suit opportunity for the land parcel for a seafood distribution center for the Arizona market.

1755-S-75th-Ave-1

Big Deals: Industrial, June 2014 – July 2014

azre_big_dealsThere’s no such thing as a “small” deal in this industry, coming out of a recession. However, it’s the big deals, and the brokers who make them, that make the market an interesting one to watch. In every issue, AZRE publishes the top five notable sales and leases for a period of 60 days (one month out from publication) based on research compiled by Cassidy Turley and Colliers International with CoStar.

Top 5 Notable Leases and Sales (June 1, 2014 to July 31, 2014) Source: Cassidy Turley Research Department, Colliers International and CoStar.

Industrial Sales

1. Logistics 75, Phoenix
682,291 SF; $27.9M
Buyer: LBA Realty
Seller: Buzz Oates Enterprises
Listing and Buying BrokerS: Mark Detmer and Bo Mills, JLL

2. 1666 N. McClintock Dr., Tempe
146,142 SF; $16.05M
Buyer: Cole Credit Property Trust III, Inc.
Seller: Levine Properties, Inc.

3. Black Canyon Business Park, Phoenix
218,777 SF; $13.1M
Buyer: BKM Capital Partners, LP
Seller: Business Properties Management
Listing Brokerage: Cassidy Turley

4. Jabil Circuit, Tempe
193KSF; $11,415,000
Buyer: EverWest Real Estate Partners, LLC
Seller: Jabil Circuit, Inc.
Listing Brokerage: Cushman & Wakefield

5. 9235 S. McKemy St., Tempe
81,200 SF; $7.5M
Buyer: Development Services of America, Inc.
Seller: Atlas Development Corporation
Listing Brokerage: Cassidy Turley

Industrial Leases

Kyrene 202 Business Park

Kyrene 202 Business Park


1. Kyrene 202 Business Park – Building I, Chandler
50,544 SF
Landlord: EastGroup Properties
Tenant: CORT Business Service Corp
Landlord Brokers: Paul Sieczkowski and Rob Martensen, Colliers International
TENANT Brokers: Jim Wilson, Cushman & Wakefield

2. 3315 W. Buckeye Rd., North Building, Phoenix
43,357 SF
Landlord: The Blackstone Group LP
Tenant: DAT Cabinets
Landlord BrokerAGE: JLL
TENANT BrokerAGE: Southwest Commercial Brokerage

3. 4707 W. Van Buren St., Phoenix
40,541 SF
Landlord: William I & Patricia M. Grubman Trust
Tenant: Allied Packaging Corporation
Landlord BrokerAGE: Cassidy Turley
TENANT BrokerAGE: American Realty Brokers

4. 1502 E. Haldey St. – Bldg. 6, Phoenix
36,368 SF
Landlord: Phoenix Adobe Partners, LLC
Tenant: Allied Packaging Corporation
Landlord BrokerAGE: Harrison Properties
TENANT BrokerAGE: Cassidy Turley

5. 4445 E. Elwood St., Phoenix
37,552 SF
Landlord: ADOT;Prologis
Tenant: J & K Cabinetry, Inc.
Landlord BrokerAGE: ADOT
TENANT BrokerAGE: Colliers International

valley-submarkets

Valley Of The Submarkets

Jeff Hays, senior vice president of sales and leasing at Commercial Properties Inc., is starting his 30th year specializing in the industrial sector and will be the first to tell you that everybody’s busy and no one’s complaining.

LGE Design Build has 54 industrial projects either in the ground or in design, says President Dave Sellers. Brock Grayson, vice president of Layton Construction and co-chair of GPEC’s Community Building Consortium, shares the same sentiments with Layton’s 650KSF of build-to-suit and expansion projects in Arizona.

While LGE’s sweet spot, says Sellers, includes many manufacturing buildings and design-build projects for companies that won’t fit into a spec space, spec isn’t dead. About five spec industrial buildings are in the planning or permitting process. From Sellers’ perspective, the sector is suiting up, so to speak. In the last two months, Sellers says, LGE Design Build has received seven new build-to-suit projects. Layton Construction has also seen some build-to-suit demand. The rise in these projects for Layton has little to do with a declining interest in spec development, says Grayson and Layton Executive Vice President Andrew Geier. They’re just keeping busy with everything else.

patfeeney-andrewgeier-brockgrayson-jeffhayes-davesellers

Between the build-to-suits and the spec development, though, are the empty spaces contributing to deceptively high vacancy rates. These are the semi-obsolete industrial buildings that need some tenant improvement or a functional change.

A lot of businesses need excess land for more parking or equipment or yard storage, he adds. “It has become a lot more difficult to find quality buildings. That’s leading to some build-to-suits,” he says.

CPI has worked on a handful of distribution center build-to-suits, including Barrel of Fun in Tolleson and Legends Furniture. Unlike office and retail, there’s less interest in aesthetics as much as functionality — clear heights, power capabilities and square-footage.

It’s one thing that’s keeping obsolete industrial spaces from becoming dysfunctional. It’s about $25 per square foot to raise a roof, for instance, so office users looking for that industrial feel are more likely to take the old 16-foot industrial space than someone who is looking for the new 36-foot clear heights. Users are safer bets (they’ll pay more), but Hays says CPI is seeing more action from investors lately, particularly with those in California.

speculative-construction-2014

MARKET UPDATE
While the rents seem to have stabilized overall and absorption in 2Q was 4MSF, things still aren’t where they were. But CPI’s Hays isn’t concerned as long as the market can reach a happy medium. More end-users are upsizing, build-to-suits are seeing success and quality buildings are becoming harder to find. The effect of rising construction costs depends on the submarket in which a developer is looking.

Papago Tech Exterior

Papago Tech Exterior

The airport, East Valley and Deer Valley submarkets are seeing upward pressure on rental rates due to short supply of industrial space. In turn, CBRE Senior Vice President of Industrial Services, Pat Feeney, says the short supply of investment properties are putting downward pressure on cap rates for leased investments. The lack of available land is another way Feeney says developers can combat rising construction rates.

“Those that are lucky enough to own in these submarkets are really in the driver’s seat when it comes to tenant negotiations,” Feeney says. On the other hand, he says, the Southwest Valley submarket is “lethargic.”

Canal Crossing Logistics Center

Canal Crossing Logistics Center

“The next couple of large square footage users that lease space are going to be treated as the belle of the ball,” Feeney says. “I think that today the landlords are financially sound so it is unlikely we will see lease rates drop to the levels we saw in 2009 when the market was similar in terms of supply.”

“If it’s at the right price, someone will take it,” says Hays, adding that many class-B and -C industrial was absorbed for other uses during the downturn. “People are still looking for good quality buildings.”

A lack of leased warehouse product in the Southwest Valley available to investors, despite high demand, keeps values up, Feeney says. “Currently, the big box distribution user activity and inquiries are at a high level, but users in this group have been very slow to commit to executing leases,” says Feeney.

“However, it should be noted that while large users have been hesitant to commit, the 20KSF to 100KSF users have been extremely active. Users in this size range have been carrying the market so far this year with more than 1.3MSF of positive net absorption in the first half of 2014.

I believe that as soon as we see five to six large leases signed in the Southwest Valley big box distribution market, we will reach a balance of supply and demand that we have not seen since 2005 and 2006. I am very encouraged with the current condition of the market.” When big box distribution sees some absorption, he says, overall vacancy stands a chance at single digits.

91st Street

Colliers reports two industrial transactions in Scottsdale

$2.9 Million Sale of 7327 E. Tierra Buena Lane in Scottsdale
Colliers International in Greater Phoenix announces the $2.9 million sale of a 21,008-square-foot office/warehouse/flex building at 7327 E. Tierra Buena Lane in Scottsdale. The property was built in 1996.

Henry Mohrschladt of Newport Beach, Calif., purchased the property from TR & RT Properties, Inc. of Scottsdale.

Jim Keeley, founding partner of Colliers International’s Scottsdale office and a senior executive vice president, represented the seller. Darren Tappen of Voit Commercial Services represented the buyer.

$1.45 Million Sale of 16460 N. 91st Street in Scottsdale
Colliers International in Greater Phoenix recently completed the $1.45 million sale of a 10,710-square-foot office/warehouse/flex building at 16460 N. 91st Street in Scottsdale.

Juggernaut Holdings, LLC of Scottsdale has acquired the IDS Building, built in 2004, from LME Asset Development of Scottsdale.

Jim Keeley, founding partner of Colliers International’s Scottsdale office and a senior executive vice president, and Mike Kane, a senior vice president in Colliers International’s Scottsdale office, represented the seller.

Jim Lieberthal with Cutler Commercial represented the buyer in the transaction.

Jackie Orcutt named Rising Star

Jackie OrcuttJackie Orcutt, Director of Industrial Properties at Cushman & Wakefield of Arizona, Inc., was named 2013 Rising Star at C&W’s Industrial Conference in New Orleans.

The award is given annually by Cushman & Wakefield’s Industrial Services Group to the rising star in the business that has raised their production and profile over the past year.

“Jackie was chosen from a list of many,” said John C. Morris, Executive Managing Director | C&W Industrial Services Lead for the Americas. “We are so proud of her progress and impact, and we are excited about watching her continue to excel. She is an important part of our future in Phoenix.”

Jackie Orcutt awardOrcutt joined C&W of Arizona in 2011. In 2013 she helped negotiate 96 transactions (69 in Arizona and 27 nationally) totaling 2.945 million square feet. The largest single transaction was representing Alliance Commercial Properties and American Realty Advisors in the lease of 147,486 square feet to Origami Owl in Chandler.

“It has been an honor to work with such incredible talent within Cushman & Wakefield – both locally and nationally,” Orcutt said. “I am grateful for the recognition and for the opportunity to grow our client relationships with the support of the C&W platform.”

Orcutt is a board member with AZCREW, is on NAIOP Arizona’s Best of NAIOP committee, the ULI Partnership Forum program and is a member of C&W’s Future Leaders Group.

Orcutt was named to Arizona Business Magazine’s Generation Next Forty Under Forty, and was a nominee in the brokerage categories for the RED Awards and Best of NAIOP.

Dick's Sporting Goods distribution warehouse, Goodyear

Industrial Evolution: West Valley poised for land grab

Dick’s Sporting Goods built a 720KSF distribution center in Goodyear to service its West Coast stores.

A California-based investor erected a 400KSF spec shell in Surprise’s Southwest Railplex business park.

Corporate giants, Macy’s, Amazon, Sub-Zero, Marshall’s/TJ Maxx, Southwest Products and WinCo have landed or expanded their vast West Valley industrial operations within the last two years.

Even more companies are eyeing potential stakes in the burgeoning industrial parks springing up in once sleepy bedroom communities west of Phoenix.

With the recession in their rear-view mirrors, local, national and international companies are revving up manufacturing and distribution operations, and the West Valley is poised to be a big beneficiary of their expansion plans.

Justin LeMaster, Cushman & Wakefield

Justin LeMaster, Cushman & Wakefield

Available and affordable land, a deep labor pool, business-friendly state and local governments and top-notch transportation corridors contribute to the West Valley’s desirability, said Justin LeMaster, Cushman & Wakefield’s director for industrial properties.

Farsighted developers are already master-planning vast spreads of land, setting up infrastructure and even building large-scale spec structures that can accommodate another industrial giant or get sliced and diced to accommodate several smaller operations.

The developers — along with city and state economic development specialists — want their properties primed to snag the business when the lookers become movers, LeMaster said.

“Smart, creative developers will make the West Valley a successful high-growth market for years to come,” he said.

The numbers confirm the trend.

An impressive 4.5 MSF — nearly 94 percent of the metro area industrial construction started or completed in 2013 — is in the West Valley, according to Jones Lang LaSalle’s Q4 Industrial Report.

Q4 absorption was 1.96 MSF, and only 15.3 MSF of the West Valley’s 90.7 MSF total industrial inventory was still available at year’s end.

Nevertheless, 4.5 MSF is a significant amount of new inventory for a post-recession market, and, in fact, it boosted Valleywide industrial vacancy rates above 12 percent.

Anthony Lydon, Jones Lang LaSalle

Anthony Lydon, Jones Lang LaSalle

Industry experts aren’t worried.

“The new, grown-up, industrial tenants coming to market right now are looking for 300KSF, 400KSF and above,” said Anthony Lydon, Jones Lang LaSalle managing director for Supply Chain & Logistics Solutions.

Less than half of the West Valley’s available space meets that criteria, and a few big employers could snatch that up in a flash, he said.

Like LeMaster, Lydon expects that to happen sooner rather than later.

“Over the next 24 to 36 months, the Valley, and the West Valley in particular, will see significant new job creation,” he said.

So what makes the West Valley suddenly so attractive to the industrial users?

“Economics and location,” said Pat Feeney, CBRE senior vice president for industrial services.

Cost is key
Of the metro area’s three major industrial hubs ­— the airport area, the Tempe/Chandler corridor and the West Valley — the first two are nearly out of developable land, Feeney said. And scarcity makes that land pricey, especially for a large user.

Pat Feeney, CBRE

Pat Feeney, CBRE

A skilled and diverse labor force that moved west when the home builders did is another major factor, he said.

“Nearly 70,000 people live in Goodyear, but only 14,000 or 15,000 work in Goodyear,” Feeney said.

When big employers like Sub-Zero, Amazon and Macy’s held job fairs for their new West Valley digs, they typically attracted eight to 10 qualified applicants for every position, he said.

“They all shared that they were so happy they could pick the cream of the crop,” Feeney said. “It’s a really big draw.”

David Krumwiede, Lincoln Property Company

David Krumwiede, Lincoln Property Company

Staffing a large warehouse is a major economic concern, especially for companies with labor-intensive, e-commerce picking systems, said David Krumwiede, executive vice president for Lincoln Property Company, which owns 6 MSF in its four-state Desert West Region, 2.4 MSF of that in the West Valley, including Goodyear AirPark and 10 Lincoln.

Arizona’s main competition for the big industrial users looking to establish or expand operations in the West is California’s Inland Empire, Krumwiede said.

While the Inland Empire’s construction costs are comparable to Arizona’s, labor costs in Arizona, a right-to-work state, are much lower, he said.

“We are extremely competitive with California’s Inland Empire if a user has more people than trucks,” Krumwiede said.

And big energy consumers, such as companies employing sophisticated e-commerce logistics technology, can save as much as 30 percent to 40 percent in operating costs by locating in Arizona instead of California, Lydon said.

But possibly the biggest economic incentive for many industrial users is Arizona’s much more favorable tax basis, Krumwiede said.

All of the West Valley’s large planned business hubs have designated areas that are Foreign Trade Zone capable, and that’s a big selling point for companies that do significant international business in parts or products, Krumwiede said.

“If a company qualifies, it can see a 72 percent reduction in property taxes,” Feeney said. “It’s a tremendous benefit.”

And a benefit none of the nearby states can offer, he said.

Such issues make Arizona, especially the West Valley, where land is available and affordable, a clear economic winner over California.

Location, location, location
Second only to the West Valley’s attractive economics, is its advantageous location, less than half-a-day’s drive from the southern California ports — a major consideration for retailers and e-commerce leaders like Amazon, as well as manufacturers like Sub-Zero, according to the experts.

Rob Martensen, Colliers International

Rob Martensen, Colliers International

“If you can get out of traffic and get closer to the ports in Los Angeles and Long Beach, you can make that in six hours,” said Rob Martensen, Colliers International vice president.

That means truck drivers can log a round trip and still stay within federal guidelines regarding length of time on the road, a feat not so easy to accomplish from the East Valley.

And for companies distributing products regionally — Macy’s or Dick’s Sporting Goods, for example — the completion of the Loop 303 will forge the final freeway link that can speed trucks to and around cities and states north and west of Phoenix.

“It will open the gateway,” LeMaster said. “Companies want to be in Phoenix, and the West Valley will be the industrial hub of Phoenix with the (Loop 303/I-10) interchange.”

Overall, the combo of favorable attributes will ensure the West Valley lands on the short list for large and small industrial users for the next decade or so, Krumwiede said.

“The companies that are already out there — Amazon, Target, Costco, PetSmart, Staples, Macy’s — are all household names. It’s a great start. We’ll see more of those,” he said.

“My vision is that a lot of that vacant land will be put into production in the next five to 10 years.”

CBRE Dunn Edwards, Web

CBRE Negotiates $3.6M Sale of Industrial Buildings in Tempe

CBRE has negotiated the sale of 1868 and 1872 E. Broadway Rd. in Tempe. The two industrial buildings, totaling 129,690 SF, commanded a sale price of $3.6M.

Evan Koplan and Mike Parker with CBRE’s Phoenix office represented the buyer, Hypertec USA, which is a subsidiary of Saint-Laurent, QC, Canada-based Ciara Technologies in the cash transaction. The seller, Dunn Edwards Paints, was represented by Rick Lee and Allen Lowe with Lee & Associates in Phoenix.

When Hypertec initially toured the Sky Harbor Airport Area and Southeast Valley there were only five viable options for existing sale product above 100,000 SF,” said CBRE’s Koplan. “1868 and1872 E. Broadway Rd. offers great freeway access, frontage on a major arterial roadway and the ability to occupy both buildings or continue to lease the frontage building. Hypertec made the decision to take advantage of current market conditions and we were able to negotiate a deal which transacted far below replacement cost.”

Built in 1973, the class-B industrial property was previously owned by Los Angeles-based Dunn Edwards Paints who used the space as a showroom/retail location as well as a manufacturing facility.

Morelos Place, Lee and Associates

Big Deals: Industrial, Oct. to Nov. 2013

There’s no such thing as a “small” deal in this industry, coming out of a recession. However, it’s the big deals, and the brokers who make them, that make the market an interesting one to watch.
In every issue, AZRE publishes the top five notable sales and leases for a period of 60 days (one month out from publication) based on research compiled by Cassidy Turley and Colliers International with CoStar.
Top 5 Notable Leases and Sales (October 1 to November 30, 2013) Source: Cassidy Turley Research Department, Colliers International and CoStar

 

SALES

1. First Solar Factory, Mesa First Solar 2
1,328,075 SF; $113.6M
Buyer: Everest Apple Inc.
Seller: First Solar, Inc.
Listing Brokers: Michael White, Jim Wilson and Nathan Zoucha Cushman and Wakefield

2. Coldwater Depot, Phase I, Avondale
603,853 SF; $39.65M
Buyer: Lake Washington Partners
Seller: Clarion Partners
Listing Brokerage: CBRE

3. Mountain Vista Commerce Center, Phoenix
126,263 SF; $11.36M
Buyer: Stockbridge Capital
Seller: Buchanan Street Partners

4. Lincoln Sky Harbor, Scottsdale
126,807 SF; $7,525,000
Buyer: Pacific Office Furnishings
Seller: Lincoln Property Company
Listing Brokerage: CBRE

5. McDowell Mountain Business Center III, Scottsdale
79,720 SF; $7M
Buyer: Matthew Wykoff
Seller: R T Shell, Inc.
Listing Brokerage: Shell Commercial

 

LEASES

1. 6850 W. Morelos Pl., Chandler 6850 W Morelos
126,251 SF
Landlord: Eastgroup Properties, Inc.
Tenant: Arizona Nutritional Supplements
Landlord and Tenant Brokers:
Tom Louer and Stein Koss, Lee & Associates

2. 1901 W. Fillmore St.,
Phoenix
42,444 SF
Landlord: Phoenix Freeway Partners
Tentant: The Sutta Company, Inc.
Landlord Brokerage: Harrison Properties
Tenant Brokerage: Cresa

3. 51 Bells,
Glendale
40,650 SF
Landlord: 51 Bells Limited Partnership
Tenant: Empereon Marketing
Landlord Brokerage: Cassidy Turley

4. 5010 S. 48th St.,
Phoenix
30,240 SF
Landlord: Northcom 44 LLC
Tenant: National Restaurant Supply Co.
Landlord Brokerage: Cassidy Turley

5. 7239 N. El Mirage Rd.,
Glendale
23,500 SF
Landlord: AZCO Mining, Inc.
Tenant: Vision Air America, Inc.
Landlord BrokerAGE: Sorensen & Black
Tenant Brokerage: Cassidy Turley

7200 West Buckeye Rd, JLL

JLL Brokers $26.25M Deal of Industrial Property

Phoenix industrial absorption rates may have hiccupped mid year, but investors are not deterred, as illustrated by the sale of 7200 W. Buckeye Rd. in southwest Phoenix. Jones Lang LaSalle’s Capital Markets experts facilitated the sale on behalf of the owner this week. 7200 West Buckeye Road Industrial Investors, LLC purchased the 400,000 SF industrial property for $26.25M.

Jones Lang LaSalle Managing Directors Mark Detmer and Bo Mills represented the buyer and the seller.

Located on Buckeye Road within minutes of Interstate 10, 7200 Buckeye Road is 100 percent leased through 2017 to national credit tenant, Home Depot U.S.A., Inc. The building was built in 2009 and includes state-of-the-art features such as 32’ clear height, ESFR sprinklers, cross dock loading, concrete truck courts and trailer storage.

“This industrial project competes toe-to-toe with the best assets in the Valley,” said Detmer. “As our industrial market continues to strengthen, this property—like so many others in Phoenix—will deliver on its upside potential through rent growth, tenant retention and steadily rising values.”

According to JLL research, industrial vacancy levels in southwest Phoenix are almost 10 percent lower than they were two years ago, with more than 10 MSF of requirements still actively touring the market for space. As of September, the firm’s quarterly Phoenix Industrial Market Report shows the southwest Phoenix warehouse/distribution inventory at 15.6 percent total vacancy and average total asking rents of $0.92 per-square-foot. This compares to an overall Valley warehouse/distribution vacancy rate of 12.7 percent and average asking rents of $0.43 per-square-foot.

Elliot Corporate Center

Big Deals: Industrial, Aug. to Sept. 2013

There’s no such thing as a “small” deal in this industry, coming out of a recession. However, it’s the big deals, and the brokers who make them, that make the market an interesting one to watch.
In every issue, AZRE publishes the top five notable sales and leases for a period of 60 days (one month out from publication) based on research compiled by Cassidy Turley and Colliers International with CoStar.

 

SALES

Elliot Corporate Center

Elliot Corporate Center

1. Elliot Corporate Center I
Tempe
223,392 SF; $23,500,000
Buyer: Everest Holdings, LLC
Listing Broker: Jim Fijan and Will Mast, CBRE

2. Cotton Center Bldg. 2 (Phase I)
Phoenix
99,734 SF; $18,880,000
Buyer: Cole Corporate Income Trust, Inc.
Seller: LBA Realty

3. Rio Salado Corporate Center
Tempe
82,257 SF; $14,402,000
Buyer: Cole Corporate Income Trust, Inc.
Seller: LBA Realty

4. Opus Commons
Tempe
125,720 SF; $10,062,170
Buyer: Cal-Int Foods, Inc.
Seller: Valley Citrus Packing, Co.
Listing Broker: Steve Grossoehme, Rein & Grossoehme

5. Broadway Industrial Park
Tempe
101,601 SF; $9,077,000
Buyer: DCT Industrial Trust
Seller: Prologis
Listing Broker: Mark Detmer and Bo Mills, Jones Lang LaSalle

 

LEASES

1. Papago Distribution Center, Phoenix

Papago Distribution Center

Papago Distribution Center

221,116 SF
Landlord: Prologis  Tenant: Marathon Equipment
Landlord Brokers: Anthony Lydon and Marc Hertzberg, Jones Lang LaSalle Tenant Brokers: Don MacWilliam and Payson MacWilliam, Colliers International

2. Fairmont Commerce Center, Tempe
83,280 SF
Landlord: Walton Street Capital Tentant: MXD Group
Landlord Brokers: Steve Larsen, Steve Sayre and Bill Honsaker, Jones Lang LaSalle Tenant Brokers: Steve McKendry, Kris Jenkins and Trevor McKendry, DAUM Commercial Real Estate

3. Carver Distribution Center, Tempe
74,102 SF
Landlord: Principal Financial Group Tenant: Haas
Landlord Brokers: Michael Haenel and Andy Markham, Cassidy Turley Tenant Broker: Paul Sieczkowski, Colliers International

4. Broadway Industrial Park, Tempe
72,714 SF
Landlord: RREEF Tenant: SOLLiD Cabinetry
Landlord Broker: Rob Martensen, Colliers International
Tenant Broker: Dan Casey, Rein & Grossoehme

5. 501 N. 51st Avenue, Glendale
72,437 SF
Landlord: Harrison Properties Tenant: Hensley
Landlord Brokers: Jeff Dalton, James Harrison and Natalie Dalton, Harrison Properties Tenant Broker: Bruce Calfee, Cassidy Turley

rsz_cbre-2

CBRE Closes Three Deals in Tucson

Industrial:

  • Calvary Christian Fellowship of Tucson has leased 17,100-square-feet of industrial space at North Tucson Business Center 3850 and 3875 N. Business Center Dr. in Tucson. Peter Villaescusa and Jesse Peron of CBRE’s Tucson office represented the tenant in negotiating the lease agreement. The landlord, Wilson Property Services of Phoenix, Ariz., was represented by Rob Glaser and Sarah Rushing of Picor Commercial Real Estate in Tucson. The tenant took occupancy in mid-September.

Retail:

  • Kalina Russian Restaurant of Tucson has leased 2,750 SF of retail space at Bear Canyon Shopping Center at 8987 E. Tanque Verde Rd. in Tucson. Peter Villaescusa and Jesse Peron of CBRE’s Tucson office represented the landlord, Bear Canyon Associates LLC of Tucson, in negotiating the lease agreement. This lease marks an expansion for Kalina, which previously occupied the neighboring 1,400 SF space.
  • JB Restaurants IV LLC of Tucson has leased 2,400 SF of retail/restaurant space the River Crossing shopping center located at 2040 W. River Rd. in Tucson. Peter Villaescusa and Jesse Peron of CBRE’s Tucson office represented the tenant in negotiating the lease agreement. The landlord, La Cholla & River Road Associates LLC of Phoenix, was represented by Craig Finfrock of Commercial Retail Advisors in Tucson. JB Restaurants will operate as Jerry Bob’s restaurant and will open later this year.
3510 E. Atlanta Ave.

CPI Sells Two Industrial Properties in Phoenix

Jeff Hays and Chap Neppl.

Jeff Hays and Chap Neppl.

Commercial Properties Incorporated (CPI) proudly announces the sale of two industrial buildings located in Phoenix.

Jeff Hays and Chad Neppl of CPI’s Industrial Team with Tom Snider of Cassidy Turley in San Jose represented the seller, Hadco Corporation for 3510 E Atlanta Avenue property. Hadco Corp, is a technology firm owned by San Mina-SCI Corporation in San Jose, California that previously renovated and occupied the property. Jeff Hays and Chad Neppl fully leased the property to Eberle Design Inc, and Electronic Devices, Inc prior to selling it to the new owner, Dunbar Atlanta Ave, LLC.

3502 E. Atlanta Ave.

3502 E. Atlanta Ave.

“Dunbar, a real estate investment firm from California purchased this 100 percent AC, flex building on approximately 2.21 acres of land,” Hays commented.

The sale was valued at $2.15 million ($71.48 per square foot). Ken McQueen of Lee & Associates represented the buyer in this transaction.

In addition, Jeff Hays and Chad Neppl also represented Hadco Corporation on the investment sale of a 25,430 industrial building at 3502 E. Atlanta Ave. in Phoenix.

“Harry Ross Industries, a private investor from California, paid cash for the 1.96 acre property after we had the building fully leased to Joe Enterprises, Inc,” said Hays.

The sale was valued at $1.78 million ( $70 per square foot). Pat Takash of PT Properties represented the buyer.

These two industrial properties represent two of the four buildings Hadco Corporation occupied previously. Currently, CPI is marketing a 16,194 SF and a 15,553 SF property that both Jeff Hays and Chad Neppl have available for sale or lease.

C

Turner Real Estate Breaks Ground on Eight Buildings in Phoenix

Turner Real Estate Investments of Newport, CA, broke ground this week on eight free-standing, speculative industrial buildings in Phoenix, Arizona. The buildings will be move-in ready with finished office and warehouse space beginning in the first quarter of 2014.  They will range in size from +/-11,000 square feet up to +/-20,000 square feet, and each building will include a private, fenced yard.  The project, called Turner Spectrum Spectrum Ridge AerialRidge at Deer Valley is zoned A-1, light industrial which allows for a very wide variety of uses.

“Turner Spectrum Ridge is the first Class A industrial development to break ground in the Deer Valley submarket in eight years,” says Kent Turner, Director of Marketing for Turner Real Estate Investments. “We believe that with the increased demand from buyers and the lack of available properties in area, the market is ready to accommodate this new development.”

The property is located at 7th Street and Deer Valley Road in Phoenix, Arizona, three quarters of a mile north of the Arizona Loop 101 freeway and just south of the newly constructed Federal Bureau of Investigation’s Regional Headquarters.
Senior Vice Presidents Michael Ciosek and Eric Bell of Voit Real Estate Services have been chosen to market the buildings for sale.
“We’re glad to finally see new development in Deer Valley, and can’t wait for this park to be delivered. There are currently only two existing properties of this type for sale in the area,” said Ciosek.  “The newest buildings in Deer Valley are already 7 years old, so we look forward having brand new, state of the art facilities in the marketplace.”
Butler Design Group is the Architecture firm for the project, and Renaissance Construction is building the structures.

Lee & Associates - Chad Ackerley

Ackerley Promoted to Associate Broker at Lee & Associates

Lee & Associates Arizona Principals have promoted Chad Ackerley to Associate Broker for the Industrial Division.

Ackerley came to Lee in Sept. 2011 as a runner and worked under the tutelage of Principals Stein Koss and Ken McQueen.

He worked helping his team on site selection, facility needs and build-to-suit opportunities. He also evaluated multifamily projects and land opportunities for developers and investment groups.

Prior to Lee, Ackerley worked at his alma mater, Arizona State University in the Sun Devil Club where he worked to generate donations for Sun Devil athletic facilities and their annual fund which provides scholarships for over 450 ASU athletes.

He also worked in residential and commercial real estate marketing, management and sales throughout the Southwest.

Ackerley is married with two children and lives in Tempe.

To contact Ackerley, call (602) 474-9562 or cackerley@leearizona.com or visit leearizona.com.

rsz_estrella_logistics_center

Jones Lang LaSalle Completes Land Sale For 600K SF Spec Industrial Building

The Phoenix office of Jones Lang LaSalle has completed a 38-acre land sale in Phoenix’s Southwest Valley that, by early 2013, will be home to approximately 600,000 SF of speculative, state-of-the-art industrial space.

Managing Directors Anthony J. Lydon, SIOR, and Marc Hertzberg, SIOR, of Jones Lang LaSalle represented the property buyer, Seefried Industrial Properties, Inc. The seller’s agent is Rich Sica of Daum Commercial.

The site, located at the NEC of 63rd Ave. and Sherman Way in Phoenix, was acquired by a venture between USAA Real Estate Company and Seefried Industrial Properties. The venture will proceed with the development of Estrella Logistics Center, a speculative $30M, 592,500 SF, cross-dock distribution building.

“Seefried and USAA are specialists in developing, leasing and managing premier industrial logistics projects,” Lydon said. “They are experts at knowing what to build and where to build it, and they have chosen an exceptional time to deliver speculative industrial product in Phoenix.”

According to Jones Lang LaSalle research, there is approximately 6 MSF of current user demand in Phoenix for requirements of 100,000 SF or more; however, supply has not kept up with demand. As such, the market experienced an anaemic first quarter, with just 92,598 SF of net industrial absorption as compared to a total 6.9 MSF of net industrial absorption in 2011.

“The only local industrial construction that we’ve seen completed this year falls in the single-tenant, build-to-suit category,” Hertzberg said. “This does little to satisfy this market’s broader demand for large blocks of space. This will be the key driver for new Phoenix speculative industrial development in 2012.”

Jones Lang LaSalle reports that demand for larger industrial spaces in the Southwest is the strongest among national retailers, food and beverage distributors, solar and e-commerce businesses. This is due in large part to Phoenix’s proximity to California, its 30 to 40% lower business costs, and the availability of quality land that is also near the market’s many accessible transportation lines.

The future Estrella Logistics Center site will be fully improved with all of the modern logistics amenities expected by the supply chain industry. The project sits just south of Interstate 10, between the 59th and 67th avenues full interchanges.

Construction on Estrella Logistics Center is slated to begin in October and will be completed by May 2013. For occupancy, Seefried and USAA plan to pursue corporate employers seeking a scalable space solution.

CBRE - Rusty Kennedy

CBRE's Rusty Kennedy Receives National NAIOP Award

CBRE Senior Associate Rusty Kennedy has been named one of the recipients of NAIOP’s 2012 Developing Leader Award.

The annual award is presented to 13 exceptional young professionals from across the country based on their achievement in their field, as well as their outstanding contribution to the industry and the NAIOP organization.

Kennedy, who began his career at CBRE in 2007, focuses his business on the industrial market. Earlier this year, the Arizona NAIOP chapter recognized him among its Industrial Brokerage Team of the Year and named him its Developing Leader.

Kennedy is also active in industry and community organizations including vice chairperson of NAIOP Arizona’s Developing Leaders Steering Committee, a member of the Council of Supply Chain Management Professionals, Southwest region leader of CBRE’s National Associate Industrial Broker Network, Young Life leader at Camelback High School and a board member of the Junior Golf Association of Arizona.

The developing leaders will receive their awards at a presentation at NAIOP’s national conference, which will be held in October 2012 in Washington, D.C.

Fickel - Castaneda - Aguilar

Sundt Construction Expands Civil/Industrial Team

Sundt Construction added three new employees to its civil/industrial team: Larry Fickel, area manager; Andre Castaneda, estimator II; and Nicholas Aguilar, field engineer.

As an area manager, Fickel will be responsible for projects throughout Greater Phoenix. He brings more than three decades of experience to his new role, most recently serving as a senior project manager for a Colorado-based contractor, where he was involved with a variety of projects, including water and wastewater treatment plants. Fickel earned a Bachelor of Science in building construction from Texas A&M University and continues to serve on the university’s Construction Industry Advisory Council.

Castaneda, an estimator, joins Sundt from a Tempe-based firm, where he worked as a project engineer and field estimator on roadway expansions and water treatment facilities. Castaneda earned a Bachelor of Science in construction management from Arizona State University.

Aguilar will work as a field engineer on the BHP Pinto Valley Restart project. He most recently worked as a project engineer at the Solana Generating Station in Gila Bend. Aguilar earned a Bachelor of Science in civil engineering from Arizona State University, and remains active in the engineering community. He is a member of the Society of Hispanic Professional Engineers, Engineers without Borders, and Bridges to Prosperity.

For more information visit sundt.com.