Phoenix-based Baker Development Corporation (BDC), and New York’s Foundation Capital Partners (FCP), along with joint venture partner GTIS Partners, have secured a $39 million refinance loan for Yuma|143, a recently completed, 490,278-square-foot Class A industrial development in Goodyear, Arizona. The project reached 100% occupancy just last week, with the last of three major lease commitments.
The Yuma|143 refinance loan was arranged by Newmark Debt and Structured Finance Co-Presidents Dustin Stolly and Jordan Roeschlaub, Executive Managing Director Chris Kramer and Associate Tim Polglase. Arizona Bank and Trust provided the loan.
“Yuma|143 is a tremendous product in a prime location that was developed, leased and stabilized by an exceptional project team,” said Baker Development Corporation’s Principal Daniel J. Slack. “This loan – secured in the current, challenging lending environment – is a testament to the knowledge and relationships of this collective group and the powerhouse status enjoyed by the Phoenix industrial market.”
Yuma|143 is located at 14160 and 14170 W. Yuma Rd., immediately north of Phoenix Goodyear Airport and within two miles of Interstate 10. In early 2022, the project secured a full-building, 300,100-square-foot pre-lease for the entire 14170 building from HelloFresh subsidiary Factor 75 for its food processing operation, which includes a significant freezer-cooler component. That commitment is expected to generate approximately 800 or more new local jobs.
The adjacent, 190,178-square-foot 14160 building is fully leased to two tenants. Maryland-based Apex Tool Group has leased 131,351 square feet to support its power and hand tool manufacturing operation. Just last week, Washington-based Romac Industries Inc. also announced its commitment to the building, entering the Arizona market with a 58,827-square-foot lease for a new manufacturing facility that just began operations and brings the entire project to 100% occupied.
“Goodyear’s combination of location, abundance of land and cost saving initiatives create strategic opportunities that continue to attract businesses to the market and propel new development,” said Roeschlaub. “The future of Yuma|143 is anchored by those advantages. We are pleased to contribute to its ongoing success.”
Features of Yuma|143 include up to 40’ clear heights, insulated dock-high and grade-level doors, full concrete truck courts, clerestory windows and generous parking. It is located within a Foreign Trade Zone, allowing up to a 72 percent reduction in real and personal property tax.
Butler Design Group served as the project architect for Yuma|143. The engineer was Hunter Engineering. Anthony Lydon, Marc Hertzberg, Riley Gilbert and John Lydon of JLL are the project’s exclusive leasing brokers.
According to JLL data, the metro Phoenix industrial vacancy rate fell to just 3.1 percent as of the end of Q2 2023, driven by the logistics, e-commerce and advanced manufacturing industries.
Yuma|143 is one of eight industrial developments completed or underway by BDC. The project is preceded by VB|143, a 325,000-square-foot BDC and FCP-developed industrial project also located in Goodyear. BDC is currently underway on Cactus 303, totaling 81 acres and 1 million square feet fronting the Loop 303 in Surprise, Arizona. Last year it also purchased 30.1 acres northeast of Sky Harbor Airport suitable for a major infill office, industrial or mixed-use user.