MDH Partners has purchased roughly 41 acres in Goodyear with plans to construct a two-building speculative industrial project called Gateway 303.
Gateway 303 industrial portfolio is 100% Leased
MDH Partners today announced Gateway 303, a two-building, 600,000-square-foot, industrial development located in Phoenix is fully leased to two tenants. Rusty Kennedy, Pat Feeney, Dan Calihan and James Cohn of CBRE market and lease the facility on behalf of ownership. Winsupply will occupy Building A, a 362,603-square-foot industrial building, and a Fortune 50 tenant will occupy Building B, a 237,347-square-foot industrial building.
“Undergoing a rapid lease-up for Gateway 303 is a testament to the insatiable demand from large industrial users in the Phoenix market,” said Drew Crawford, Vice President at MDH Partners. “Phoenix warehousing facilities cater perfectly to users like Winsupply, due to accelerating population growth, affordability, ample job opportunities and increased demand in Phoenix’s industrial real estate market.”
MDH Partners purchased 41 acres to develop Gateway 303 in December 2020 and will deliver the two Class-A industrial buildings later this Summer. The industrial development is located within a master-planned industrial park along Phoenix’s Loop 303 corridor. Gateway 303 is also designed with the structural capacity to be upfitted for solar paneling as part of MDH Partners’ ESG initiative.
Winsupply is one of America’s leading wholesale distributors of materials for residential and commercial construction and industrial use. Winsupply has more than 630 local companies across 45 states and offers entrepreneurs guidance and services to start and run wholesale distribution businesses that support local contractors. The company conducts business-to-business wholesale distribution of plumbing supplies, air-conditioning equipment, refrigeration equipment, hydronic systems, electrical equipment, utility supplies, industrial pumps, fastening hardware and landscape supplies. Winsupply will utilize the space as a regional distribution center.
“Winsupply is very excited to expand our distribution network to Phoenix, better positioning our local companies to serve their customers with best-in-class service and product availability. Partnering with MDH Partners has already proven to be a valued relationship.” said Bill Tolliver, Vice President Real Estate Services at Winsupply.
Leasing activity in the Phoenix industrial market is extremely active and on pace to break records set in 2021. According to the CBRE, Phoenix saw a new record low vacancy rate in the first quarter of 2022, with only 2.9% of the region’s industrial space remaining vacant. In addition, the highest net absorption and asking lease rate in a quarter were recorded.
MDH Partners currently owns over 1.3 million square feet of industrial assets in Arizona. In April, the firm acquired Kentwood 303, a two-building industrial portfolio on the same street as Gateway 303. MDH Partners has remained very active, acquiring nearly five million square feet of industrial assets throughout the U.S. since last January. The firm recently expanded its portfolio into new markets including California, Minnesota, Maryland, Indiana, Illinois and Pennsylvania. The firm currently owns over 85 assets across 20 states.