MAG Capital Partners buys cold storage facility in Phoenix

Real Estate | 13 May |

MAG Capital Partners, LLC, continues to accelerate its expansion into the cold storage sector with its acquisition of a 38,300-square-foot facility in Phoenix, Arizona.

Led by principals Dax T.S. Mitchell and Andrew Gi, MAG Capital Partners announced that it has acquired 2721 W Willetta Street, a fully occupied cold storage warehouse property situated on 1.73 acres of land adjacent to major freeways and a consumer base of 35 million within a one-day truck drive.

Mary Garnett and Jim Tuesley of Barnes & Thornburg LLP represented MAG Capital Partners in the sale-leaseback transaction. Oscar Lopez and Steve Lowe with Matthews Real Estate represented the seller, Lin’s Distribution Corp.

Built in 1980, 2721 W Willetta Street is a cold storage warehouse property with five truck wells and two industrial GL doors. The multi-tenant facility is fully occupied by Lin’s, Red Bird Farms Distribution Company and Bon Suisse, Inc., both of which are leaders in high order food fulfillment throughout the states of California, Arizona and Nevada.

Concurrent with the sale, Lin’s signed a long-term leaseback deal to continue to occupy the property.

“There is clearly a national surge in demand for cold storage facilities as online grocers work to meet the historic logistical transformation underway,” said Dax T.S. Mitchell, principal of MAG Capital Partners. “In completing this latest sale leaseback, we continue to grow our network of strategically located facilities in a vertical that cannot meet the demand for the evolution of more direct-to-consumer food delivery services.”

The deal comes as the global logistics sector undergoes dramatic change in the wake of significant shifts to the storage and distribution businesses for both perishable foodstuff as well as pharmaceuticals and medical supplies.

MAG Capital Partners continues to seek out flexible, climate-controlled assets within all U.S. markets, with established tenants, promising economic and demographic trends, and proximity to major population centers.

MAG Capital Partners acquires Phoenix property  in sale-leaseback transaction

MAG Capital Partners, LLC has closed on the acquisition of an industrial property and office building located at 20635 N 29th Place in Phoenix through a sale leaseback-structured transaction.

Mary Garnett and Jim Tuesley of Barnes & Thornburg LLP represented MAG Capital Partners in the transaction. Steve Lowe and John Stroud with Matthews Real Estate represented the seller, TLB Construction – The Landscape Broker, an established commercial and residential landscape design, construction and maintenance company.

TLB signed a long-term lease to continue to occupy the property, which is situated in the highly sought-after Deer Valley area where rapid job and population growth have expanded the ever-growing consumer base, generating massive development demand. 

Led by principals Dax T.S. Mitchell and Andrew Gi, MAG Capital Partners continues to expand its diversified portfolio of single-tenant, triple net-leased industrial real estate assets across the U.S.

“20635 N 29th Place is a welcome addition to our Phoenix portfolio as we continue to expand our industrial holdings in both Phoenix and the U.S.,” said Mitchell. “TLB has been doing business in the Phoenix area for over 20 years and, as shifting market dynamics continue to propel Arizona to the top of the real estate leaderboard, our investment is an ongoing revenue generator that offers tremendous future capital opportunities.”

Experts predict that Phoenix will be America’s second-hottest housing market in 2021, behind Austin, Texas. The area’s abundance of available land, large talent pool, favorable tax environment and strong infrastructure have proven to be a magnet for businesses and residents alike.

Among a slew of major developments coming to the area, the world’s biggest contract chipmaker Taiwan Semiconductor Manufacturing Co Ltd., is building a $12 billion production facility in north Phoenix. Arizona’s largest-ever direct foreign investment, the project will break ground this year and is expected to create 2,000 jobs. 

Said Gi, “Phoenix is one of the best industrial markets in the country; we are thrilled to have completed our third acquisition there in the last two quarters.”

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