California-based industrial real estate investment and development firm CapRock Partners today announced it secured a seven-year lease for the firm’s signature industrial property in Phoenix, Ariz. to Caraustar, one of the nation’s largest integrated manufacturers of 100 percent recycled paperboard and converted paperboard products. CapRock Partners completed extensive renovations on the 110,710-square-foot property earlier this year, elevating the asset to a Class A institutional-quality facility in the highly sought-after Sky Harbor submarket.
“The Caraustar transaction is one of the largest leases, and only the second lease over 100,000 square feet, that closed in the Sky Harbor submarket this year,” said Jon Pharris, co-founder and president at CapRock Partners. “With high absorption and increasing rents, we’re very pleased to have a foothold in the burgeoning Phoenix industrial market as CapRock continues to expand its regional presence in the Southwest U.S.”
CapRock Partners identified the property as an opportunity to complement the firm’s value-add investment strategy. Upon acquisition in 2017, CapRock Partners made improvements that enhanced the building’s appearance and functionality, converting it to a state-of-the-art industrial facility and positioning it to attract the high-quality tenant. The renovated building includes 2,000 square feet of new high image office with Loop 202 freeway frontage, 22 dock high doors, 30-foot clear heights and LED warehouse lights. CapRock reconfigured the yard area to create a fully secured truck court, added trailer parking stalls, and upgraded the sprinklers to an Early Suppression Fast Response (ESFR) system.
Located at 225 S. 51st Street, the property is situated on 5.8 acres, minutes from Sky Harbor International Airport. The building provides immediate access to local freeways and is approximately six miles from downtown Phoenix. Corporate neighbors include Amazon, Honeywell International, Inc., Boeing and Ferguson Enterprises, among others.
“The CapRock team repositioned the Sky Harbor property to attract a quality tenant like Caraustar by incorporating advanced technology and a design that delivers on the utility and functionality needs of today’s industrial users,” added Bob O’Neill, Senior Vice President.
CapRock Partners acquired the industrial building in an off-market transaction in a deal facilitated by Koss Louer Team at Lee & Associates. CapRock Partners was represented by Phil Haenel, Mike Haenel and Andy Markham at Cushman & Wakefield. Caraustar was represented by Bill Honsaker with JLL.