CapRock Partners, a leading private industrial investment and development firm based in Newport Beach, Calif., today announced it has acquired a newly constructed industrial building located at 4615 W. McDowell Rd. in Phoenix. This acquisition comes on the heels of CapRock’s purchase of 7200 W. Roosevelt St., a 216,880-square-foot Class A property located five miles west of the McDowell property, and brings CapRock’s Phoenix footprint to more than 1 million square feet of industrial space, with the firm already in escrow to acquire several additional properties in the Phoenix metro area.
“CapRock’s strategy to expand its foothold in the Phoenix market has not been curbed by COVID-19, in fact, we’re seeing new industrial demand drivers emerging as a result of this pandemic, including a spike in e-commerce, retailers increasing their stockpiles and companies eyeing nearshoring and onshoring to mitigate supply chain risk and disruptions,” said Bob O’Neill, senior vice president, acquisitions, of CapRock Partners. “We are seeing tenant interest ramping up in Phoenix, fueled by the rise of e-commerce and other food and medical-related sectors that have seen an increase in demand as a result of the pandemic.”
The 4615 W. McDowell Rd. asset is a 146,500-square-foot building that can accommodate up to four light-manufacturing and distribution tenants. A key consideration in the property’s acquisition was its prime visibility, with 900 linear feet of frontage along the I-10 freeway, and its optimal location, within a mile of an on/off ramp to the I-10. The location enables single-day deliveries to Southern California, Dallas, Denver and Salt Lake City. The property is surrounded by other logistics and distribution facilities occupied by high-quality tenants such as Amazon, USPS, Del Monte Foods, U-Haul, Home Depot and Walmart.
The state-of-the-art facility features two spec offices – each approximately 2,000 square feet – as well as 32-foot clear heights, 26 dock-high and four grade-level loading doors, and a concrete truck court that provides ample room for maneuvering. The eight-acre property is equipped with heavy power capacity (3,600 amps, 277/480volts).
“CapRock Partners worked closely with the contractor on the design and construction of this asset, leveraging our own development expertise to ensure that this product meets and exceeds the needs of today’s industrial users,” added Nicholas Ilagan, senior vice president, asset management. “Phoenix’s robust market fundamentals have not wavered, and we’ve seen strong tenant interest from distribution and manufacturing companies that are drawn to the building’s excellent location, prime freeway frontage and all-around functionality.”
CapRock Partners acquired the industrial building in an off-market transaction and was represented by Payson MacWilliam and Don MacWilliam of Colliers International.
4615 W. McDowell’s acquisition is part of the CapRock Partners’ Industrial Value-Add Fund III, which focuses solely on the acquisition of middle market, value-add industrial properties, generally valued between $20 million to $50 million across California, Nevada and Arizona. It is the firm’s fifth fund overall and the third in its industrial value-add series. The fund recently announced its first and subsequent second closings and is on track to reach a final closing in excess of $200 million by the end of the year.
In addition to its value-add investment platform, CapRock Partners also is one of the most active developers in the Southwest with more than 3.5 million square feet currently under construction. It anticipates commencing construction on an additional 3 to 4 million square feet in the next 12 months. The company’s total investment and development pipeline exceeds 20 million total square feet of industrial real estate valued at $2.4 billion at full build.