Cushman & Wakefield announced today that the real estate services firm served as the exclusive advisor to a partnership led by Wharton Industrial and Madison Ventures Plus in the procurement of $224,070,000 in acquisition and construction financing for The HUB @ 202, a master-planned 1.5-million-square-foot industrial park located in the Southeast Valley submarket of Mesa, Arizona. Financing for the project was provided by MSD Partners, L.P., which was formed in 2009 by the partners of MSD Capital, L.P., the family investment office for Michael Dell, the Founder & CEO of Dell Technologies. A Cushman & Wakefield Capital Markets team of John Alascio, Dave Karson, Chris Moyer, Will Strong, Kirk Kuller, TJ Sullivan, Chuck Kohaut and Zachary Smolev represented the borrower.
“The HUB @ 202 presented a compelling opportunity for the capital markets to invest in Phoenix’s Southeast Valley region, which has been one of the country’s fastest-growing industrial submarkets over the past two years,” said Alascio. “We are proud to have represented this strong partnership and extremely pleased with the full-stack financing secured from an institutional capital provider in MSD.”“We are very pleased with the execution by Cushman & Wakefield regarding this transaction. John and his team worked tirelessly in running a robust process and we couldn’t be happier in joining forces with MSD on The Hub @ 202,” added Peter C. Lewis, Chairman of Wharton Industrial. Anticipated to measure 1,497,453 square feet once fully completed, The HUB @ 202 sits on a 101-acre land parcel that will consist of an 11-building Class A master-planned industrial park. The property has been designed with the modern industrial tenant in mind and will feature 28’-36’ clear heights, ample truck and car parking, grade and dock-high loading doors and functional divisibility with a variety of bay sizes. Construction is anticipated to commence in Q2 2022. The HUB @ 202 is one of the last contiguous parcels of scale located in the center of the Southeast Valley submarket of Phoenix. The Southeast Valley is projected to lead the country in industrial rent growth over the next five years at an estimated 32%. The submarket benefits from strong industrial tenant demand driven by robust population growth, affordable labor, low cost of living, favorable business climate, access to the two most active container ports in the U.S. – Los Angeles and Long Beach – and the ability to service major West Coast population centers. The property is located one minute from Arizona Route 202, the primary commercial roadway connecting Phoenix with the Southeast Valley, and within a three-minute drive of the Phoenix-Mesa Gateway Airport.