Cushman & Wakefield announced the firm has advised the sale of a 249,904-square-foot Class A industrial asset in Tolleson (Phoenix), Arizona. Situated in Phoenix’s sought-after West Valley market, the property is 100% leased to Circle K which operates a distribution center in Tolleson as well as data center functions at the facility.
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The property located at 8313 West Latham Street was acquired by Stonelake Capital Partners, a privately owned, fully integrated real estate investment company with offices in Austin, Dallas & Houston, for $38.2 million.
Executive Vice Chairman Will Strong, Executive Managing Director Phil Haenel, Managing Director Micki Strain, Senior Director Kirk Kuller, Associate Molly Hunt and Senior Financial Analyst Callahan Conway, with support from Senior Marketing Lead Stephanie Saccente and Brokerage Specialist Sarah Baleanu, of the firm’s National Industrial Advisory Group – Mountain West team represented the seller, Oxford Properties, in the transaction.
“This is a premier industrial asset fully leased to a robust multi-national corporation with mission critical uses at the facility. Circle K has over a 20-year history at this location and has made a significant investment in the property,” said Will Strong. “The property also resides in a prime location in the heart of Phoenix’s West Valley, a hot spot that has attracted significant interest from industrial occupiers. This demand has driven interest from investors seeking strong performing assets, such as this one-of-a-kind investment opportunity.”
Strong added, “There are very limited sizeable development tracts left in the West Valley, creating a high barrier to entry.”
The distribution center in Tolleson consists of many modern features and includes a freezer, cooler, and data-center operation. The facility is located very close to Interstate 10 and is minutes of multiple major freeways including the Loop 202, Loop 303, Loop 101 and Interstate 17. The property is also less than a six-hour drive to the Port of Los Angeles and Long Beach and has complete transportation linkages via air, rail, and ground.
According to Cushman & Wakefield’s Q4-2022 market report, direct industrial vacancy in the overall Phoenix market was a healthy 4.4% with the Southwest Valley submarket, where the property is located, at 4.6%. The Phoenix market achieved a robust nearly 21.7 million square feet of occupancy growth in 2022, with the Southwest Valley submarket accounting for the lion’s share with 15.8 MSF of growth.
