Leading commercial real estate firm Lincoln Property Company (LPC) has announced the $68 million sale of a five-building industrial portfolio, representing 540,039 square feet of multi-tenant, fully leased infill space in key locations across the metro Phoenix, Arizona market.
The buildings are located at 4441 W. Polk St., 120 E. Watkins St., 4720 W. Van Buren St. and 5240 and 5302 W. Buckeye Rd. (Freeport Distribution Center). The portfolio buyer is KKR.
“These were the first building acquisitions I completed when we established the LPC Desert West office in Phoenix in 2001,” said LPC Senior Executive Vice President David Krumwiede. “They are a perfect example of our investment model, which is to purchase and build quality assets in excellent locations, and maintain them at the highest institutional level. We have owned and managed these buildings for decades, and timed their sale to maximize gains for our investment clients.”
According to LPC data, year-over-year industrial absorption has nearly doubled in Phoenix, rising from 6.43 million in 2019 to 12.7 million in 2020. More than 14.45 million square feet of industrial product was delivered in Phoenix in 2020, with construction activity expected to continue in order to keep pace with a growing demand.
Buildings within the LPC portfolio sale were constructed between 1980 and 1990, with 24- to 28-foot clear height, dock high and grade level doors, and generous parking ratios. All are multi-tenant industrial warehouses designed for small- to mid-size users. The buildings are strategically located in the highly desirable Southwest and Airport submarkets, minutes from Interstates 10 and 17, State Route 60 and the Loop 202.
CBRE’s National Partners Team, led by Darla Longo, represented LPC in the portfolio sale. The portfolio was leased by local market experts Dan Calihan, Pat Feeney and Rusty Kennedy from CBRE, and Steve Sayre from JLL.
Current LPC industrial developments in the Phoenix market include the Park303 industrial park, which is home to a 1.25 million-square-foot just-completed Building 1 and has the ability to accommodate almost 4 million square feet of Class A industrial space at build-out, and LPC’s recently announced Buckeye85, a 321,873-square-foot, Class A industrial project located along the I-10 Corridor and targeting mid-size users.
For more information on LPC Desert West development, investment and property management services, contact Krumwiede or LPC Vice President John Orsak at 602.912.8888.