MDH Partners today announces the acquisition of Kentwood 303, a two-building, 272,000-square-foot, Class-A industrial portfolio located in Phoenix, Arizona. Georga Rowe served as the acquisition lead for MDH Partners. JLL’s Lydon-Hertzberg-Gilbert team represented the seller.
“Phoenix is a strategic market for us, as it now ranks second in the nation for industrial growth delivering strong results with record net absorption and record-low vacancy as it continues to be a highly desirable market for tenant demand,” said Georga Rowe, Managing Director at MDH Partners. “There is insatiable investor interest and tight industrial inventory, so acquiring a highly sought-after asset such as Kentwood 303 is a great achievement for MDH Partners. Phoenix’s industrial market is accelerating at a record-breaking pace due to its unprecedented job growth, population growth and affordability, and we are confident Kentwood 303 will quickly attract a variety of tenants.”
Kentwood 303 is a two-building property in the Glendale neighborhood of Phoenix. Each building features ESFR sprinkler systems and clear heights of 28 feet. Building A is 143,520 square feet and located at 6075 N Cotton Lane. Building B is 128,576 square feet and located at 6051 N Cotton Lane. Building A has 14 dock doors and Building B has 8 dock doors. Both buildings have access to a 130-foot shared truck court and 1.85 parking spaces per 1,000 square feet. Building B is partially pre-leased to City Electric Supply, an electrical wholesale business.
Ideally positioned within the Phoenix industrial market, Kentwood 303 is located less than one mile west of an access point to Loop 303 and only four miles north of I-10. The property is situated 30 minutes west of the Phoenix Sky Harbor International Airport, creating a distribution point for the Southwestern United States. The area is highly desirable for manufacturing and distribution users with a workforce of 1.7 million employees located within a 30-minute commute and several notable neighbors, such as Microsoft, Wigwam Arizona, REI, Ball Corporation, Red Bull Energy Drink and FedEx.
According to JLL, the Phoenix industrial market saw nearly 3.9 million square feet of space absorbed in the fourth quarter of 2021, bringing the year-to-date absorption to 12 million square feet. At the end of the quarter, only 6.5% of the region’s industrial space remained vacant, the lowest rate in 10 years.
The purchase of Kentwood 303 increases MDH Partners’ Arizona footprint to over 1.3 million square feet. In December 2020, the firm acquired 41 acres of industrial land on the same street as Kentwood 303, in Goodyear, Arizona which is under construction for a two-building speculative industrial project named Gateway 303, which is expected to be delivered fully leased. 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.