Stos Partners, a leading commercial real estate investment and management firm specializing in value-add investments, announced its acquisition of 525 S. McClintock Drive, a 40,023-square-foot industrial warehouse in Tempe. The firm purchased the asset for $5.75 million from a private owner. The 2.65-acre property is situated along a main infill industrial corridor in one of the Valley’s most established and supply-constrained industrial submarkets. Stos Partners will implement a comprehensive renovation program to transform the Class B asset into a modern multi-tenant industrial facility designed to serve a range of small-bay warehouse users.
Originally developed as a six-tenant industrial building, 525 S. McClintock Drive was most recently occupied by a single user. Upon completion of renovations, the property will offer five to six suites ranging from approximately 5,000 to 12,500 square feet.
“Small-bay industrial space is in high demand, particularly in central infill locations where opportunities for new development are limited,” said Morgan Hill, vice president at Stos Partners. “525 S. McClintock Drive is well-positioned to provide significant upside, and we are ready to begin modernizing the property to deliver a highly functional space for local and regional occupiers seeking accessibility to Southeast Valley. We acquired the deal off-market, and the attractive basis provides flexibility to execute a thorough renovation strategy while creating long-term value.”
Planned improvements include construction of new speculative office space, reconfiguration of the warehouse into multiple tenant suites, upgrades to the parking lot, building façade and landscaping, warehouse enhancements, installation of new white scrim, HVAC replacements, roof resurfacing and new property signage.
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Built in 1975, 525 S. McClintock Drive features 14-foot clear height, six grade-level loading doors, approximately 6,000 square feet of office space, HVAC throughout the warehouse and office areas, and more than 1,000 amps of power. Located near the intersection of Loop 202 and Loop 101 and minutes from Arizona State University, the property provides convenient access to major transportation corridors, a large labor pool and some of the region’s most established employment centers. The location is well suited for distribution, service-oriented, contractor and light industrial users seeking centrally located facilities within Tempe.
“525 S. McClintock Drive aligns with our strategy, acquiring well-located industrial assets in high-barrier-to-entry markets where we can create value through strategic repositioning and active asset management,” said CJ Stos, principal and founder of Stos Partners. “This investment allows us to enhance a quality asset in a key Western industrial submarket where location, limited availability of industrial land and diverse tenant base continue to support strong fundamentals and long-term demand.”
Stos Partners’ Arizona portfolio now includes five industrial assets totaling nearly 250,000 square feet. The 525 S. McClintock Drive transaction follows the firm’s successful execution of its business plan at 2229-2235 E. Magnolia Street in Phoenix, a 39,351-square-foot industrial building acquired in July 2025. After completing a strategic value-add renovation program, Stos Partners sold the property for $8.15 million.
“We continue to see attractive opportunities in select infill industrial markets throughout the U.S.,” added Stos. “Our recent success in Phoenix reinforces our conviction in this market, and we look forward to executing a similar strategy at 525 S. McClintock Drive.”
