Camelback 303 – a $1.5 billion global logistics park being developed in joint venture by Merit Partners, First Industrial Realty Trust Inc. and Diamond Realty Investments in Glendale, Arizona – will soon begin to take shape in metro Phoenix’s fastest-growing industrial submarket.
At completion, the park will accommodate approximately 9 to 10 million square feet of Class A industrial distribution and manufacturing space, making it the largest freeway-fronting industrial employment site in Arizona.
Managing Directors Anthony Lydon and Marc Hertzberg, and Senior Vice President Riley Gilbert, from the Phoenix Office of JLL brokered the 611-acre land purchase on behalf of the development team.
“Glendale’s ‘New Frontier,’ located on the Loop 303 corridor, is quickly becoming the backbone in Arizona’s industrial market and we are thrilled to welcome Camelback 303 into this area,” said Glendale Mayor Jerry P. Weiers. “The addition of this development is another example of Glendale’s commitment to growth. Merit Partners has successfully completed several projects in Glendale and this new deal is a true testament to the importance of relationships in bringing more jobs and state-of-the-art facilities to the West Valley.”
“We are extremely excited to be building at this location and at a point in the cycle where demand for Class A industrial is exponential – and expected to continue to rise in the years ahead,” said Merit Partners President Kevin Czerwinski. “Camelback 303 is the natural extension of the market success we’ve already experienced at our adjacent industrial park, PV 303. Camelback 303 allows us to continue that momentum.”
“The Loop 303 corridor continues to grow in strength and prominence as a preferred logistics home for a range of businesses in the Phoenix region,” said Johannson Yap, Chief Investment Officer for First Industrial Realty Trust. “We are excited to expand our investment in the region and serve the needs of customers through this multi-year development opportunity with our valued partners.”
“Diamond Realty Investments is proud to continue our trusted relationship as an equity partner with First Industrial and Merit Partners in this Class A industrial development in the greater Phoenix area,” said David Richards, DRI Managing Director of Industrial Investments.
Camelback 303 sits along the west side of Loop 303, offering extensive freeway frontage between the Camelback Road and Bethany Home Road interchanges. With ample land and multiple access points along Camelback Road, Cotton Lane and Bethany Home Road, the site provides the physical and logistical advantages to serve tenants ranging from mid-size users to the region’s largest industrial operators.
“The West Valley has gained a national reputation for delivering prime locations, skilled workers and a low cost of living and doing business – all of the benefits industrial users demand,” said Hertzberg.
According to the Q2 JLL Phoenix Industrial Insights report, Valley industrial rents are on the rise and absorption is up 39 percent from this time last year, marking the 28th straight quarter of positive absorption with no sign of slowing. Nationally, JLL reports that demand for U.S. industrial real estate could increase by 1 billion square feet in the next five years.
“The e-commerce industry alone has grown by 35 percent this year, compared to just 14 and 15 percent in recent years,” said Lydon. “Sustaining this kind of consumer demand requires a massive uptick in logistical support from projects just like Camelback 303. The delivery of shovel-ready corporates sites is timely.”
Camelback 303 is a sub-four-hour-drive from Southern California’s Inland Empire submarket and will leverage its proximity to the ports of Los Angeles and Long Beach. It is less than 30 minutes from Sky Harbor International Airport and 2.5 miles from the new Northern Parkway, a four-lane I-10 reliever expressway providing workforce connectivity between the Loop 303, Central Phoenix and Glendale, and placing Camelback 303 within 30 minutes of 1.5 million residents.
With these advantages, the Loop 303 corridor is projected to grow from a 15 million-square-foot industrial submarket to more than 50 million square feet of industrial space within the next five to six years – with major users in the e-commerce, manufacturing, food and beverage, and third-party logistics companies.
Reflecting this trend, corporate employers nearby include UPS, XPO/Boeing, Ferrero, Ball Manufacturing, Sub-Zero and REI.
Camelback 303 will offer build-to-suit opportunities and speculative development.