CapRock Partners acquires industrial facility in Sky Harbor market
CapRock Partners, a leading private industrial real estate investment firm based in Orange County, California, today announced that it has acquired a distribution/manufacturing facility in the highly sought after Sky Harbor submarket of Phoenix, Arizona, in an off-market transaction. The news continues the company’s expansion into new geographic regions – with a particular focus on the Phoenix market – increasing its reach and assets under management. Since its first deal in 2010, CapRock has acquired, developed or has in its pipeline more than 9,000,000 sq. ft. of Class A industrial all located in the Western United States totaling more than $1 billion at completion of its construction pipeline.
“As a company, CapRock Partners is targeting the acquisition and development/redevelopment of new industrial investments throughout the West and Pacific Northwest markets. Phoenix is one of our target markets, as the investment fundamentals are strong with low vacancy, rising rents, and a limited supply of industrial product development,” said Co-Founder and President, Jon Pharris. “Unlike California’s industrial market, which has surpassed peak rents, the Phoenix industrial market is in the earlier stages of recovery with rents still below peak and the economic drivers are coming from a more diverse set of companies than the last cycle.”
The asset, a distribution/manufacturing building located at 225 S. 51st Street just east of Phoenix Sky Harbor Airport in Phoenix, spans 110,710 square feet on 5.8 acres and features 30-foot clear heights, 22 dock high loading doors, and 2 (20-foot-wide) grade-level doors. The property also boasts impressive frontage and high visibility on the Loop 202 Freeway. Principals Stein Koss, Tom Louer, and Associate Nick Nudo of The Koss | Louer Team at Lee & Associates, represented both CapRock Partners and the seller.
This is CapRock Partners’ first acquisition in the Phoenix market and the company will leverage its team’s development/redevelopment expertise to reposition the building with significant upgrades to the interior and exterior, in order to transition the asset to a Class-A facility. To appeal to tenants in today’s competitive industrial marketplace, CapRock Partners will create new offices, an expansive window-line and glass storefront, and complete other extensive improvements to enhance the efficiency and function of the facility.
“This was an off-market opportunity sourced through our strong local broker relationships in Phoenix,” said Bob O’Neill, Senior Vice President of Acquisitions for CapRock Partners, who heads the firm’s expansion efforts in Arizona. “This asset is an ideal fit for our growing portfolio as it is located in one of Phoenix’s most desirable submarkets and will allow us to utilize our extensive experience in repositioning, successfully marketing, and stabilizing assets.”