CapRock Partners, one of the fastest growing private industrial investment and development firms focused solely on the Western U.S., announced it closed escrow on a 226,436-square-foot, Class A industrial property – known as Papago Distribution Center – in Phoenix, Arizona. CapRock, along with an institutional client advised by CenterSquare Investment Management, purchased the property from a global asset manager for an undisclosed amount. Papago Distribution Center is CapRock’s second acquisition in the Phoenix submarket and represents the company’s continued strategic expansion into key markets beyond California.
“As the one of the fastest growing cities in the U.S., the dynamics of the Phoenix market align with CapRock’s growth strategy,” said Bob O’Neill, senior vice president of acquisitions at CapRock Partners. “With the region boasting a strong employment base and a flourishing economy, our team sees tremendous opportunity to invest and establish a foothold in greater Phoenix, especially as many corporations seek out alternative locations from the more expensive coastal markets.”
Papago Distribution Center is 100% occupied by Updike Distribution Logistics, a leading third-party logistics (3PL) company based in Phoenix. The modern facility features approximately 5,000 square feet of office space, 30-foot clear heights, 60 dock high doors and 3 drive-in ramps. A 130-foot truck court on the south side of the property provides generous room for maneuvering and is enclosed by a secured gate. The 12-acre property is equipped with heavy power capacity (3,650a, 277/480v), is rail-service capable with seven knock-out doors and includes nearly 200 parking spaces.
Located at 1010 N. 47th Avenue, Papago Distribution Center lies south of the I-10 freeway and is accessible via the 51stAvenue exit. The property is approximately seven miles to Downtown Phoenix, within a 20-minute drive to Phoenix Sky Harbor International Airport and sits among other logistics and distribution facilities occupied by Unisource Worldwide and United States Postal Service.
As Arizona continues to outpace national growth rates, CapRock is seeking out additional opportunities in Greater Phoenix. The company currently owns approximately 340,000 square feet of industrial space in the submarket and is in escrow on multiple buildings totaling an additional 450,000 square feet, which is on track to close by yearend. CapRock also recently secured a seven-year lease after completing an extensive repositioning project at its signature Phoenix asset at 51st Street and Washington Street.
Pursuing a strategic growth initiative throughout the Western U.S., CapRock is actively acquiring land for development and value-add industrial buildings in California, Nevada and Phoenix. CapRock, with its partners, is currently under development on nearly four million square feet of development in California, and later this summer plans to break ground on its first ground-up development outside of the state – a ±700,000-square-foot industrial business center in North Las Vegas. Since 2009, the company has acquired, developed or has in its pipeline approximately 14 million square feet of industrial real estate totaling more than $1.7 billion in value.
Brokers Bo Mills and Mark Detmer at Jones Lang LaSalle represented CapRock in the Papago Distribution Center acquisition transaction.