ViaWest Group buys industrial portfolio in Sky Harbor submarket
ViaWest Group announced the purchase of an industrial portfolio comprised of both vacant, developable land and two existing buildings in the Phoenix Sky Harbor submarket. Ultimately, the combined projects will have over 650,000 square feet of industrial space, including 75,000 square feet of freezer storage, with the ability to accommodate tenants in sizes ranging from 18,000 to 165,000 square feet.
Both projects benefit from excellent access and proximity to four major freeways, including I-17, I-10, SR 51 and Loop 202, pulling from a wide and diverse labor pool, and both are located within Opportunity Zones, which have substantial potential tax benefits for both development and for businesses choosing to locate in the projects.
John Werstler and Cooper Fratt of CBRE in Phoenix represented the buyer and the seller, Bayless Investment & Trading Company, in the transaction, and will be leasing the project going forward.
“Central Phoenix’s high barriers to entry, limited availability of land, prime location and the cold-storage capability, make this unique redevelopment project highly desirable for tenants, especially those in need of refrigerated industrial space, where vacancy is below 2%,” said Fratt.
The larger, 25-acre site, is located at Central Avenue and Buckeye Road, just south of downtown Phoenix, includes over 12-acres of vacant, developable land in addition to an existing fully-leased 196,672-square-foot, 30’ clear, cross-dock warehouse, and a vacant 76,301 square-foot freezer storage facility. ViaWest’s plans include renovating the freezer building and developing two new 32’ clear height buildings on the vacant land, including a ±94,000 square-foot building, divisible to two tenants, and a ± 71,000 square-foot industrial warehouse adjacent to the cold storage building.
The property immediately south of the airport is a 9.17-acre vacant land site at the northwest corner of Superior Ave. and 44th Street. ViaWest Group will develop two industrial buildings totaling ±150,000 square feet, with divisibility down to 18,000 square feet. These projects will bring much-needed Class A industrial space to the Central Phoenix/Sky Harbor submarket, which has a total industrial base over 75 million square feet, with only a 6.85% vacancy rate.