JLL announced today that it has secured a full-building pre-lease for Blue Cactus Logistics, a new 258,000-square-foot, Class A industrial development in Surprise, Arizona. TriColor Auto Group, an online auto sales and financing company, has committed to the project, bringing up to 500 new jobs to the area.
Situated at the northwest corner of Cactus Road and Summit Way, Blue Cactus Logistics is the first Arizona industrial project by national developer BlueScope Properties Group. The build-to-suit project will be fully occupied by TriColor, which purchases, inspects, repairs, finances and sells a wide range of automobiles.
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“We’ve had our eye on the Arizona industrial market since prior to the pandemic and have worked closely with JLL to stay updated on land opportunities,” said Matthew Roth, President, BlueScope Properties Group. “When the chance came to engage in this site we jumped on it, capitalizing on our position as a self-funded company to meet tight due diligence timing and enter the Arizona market. We’re thrilled to announce the commitment by TriColor and the hundreds of new jobs they will bring to Surprise.”
Scheduled for completion in mid-2024, Blue Cactus Logistics will feature a 32-foot clear height, 60’ speed bay, 26 dock doors, 3,000 amps of power and up to 1,000 stacked parking spaces. Interiors feature ESFR sprinklers, LED lighting and an abundant use of clerestory windows.
Blue Cactus Logistics will serve as TriColor’s third Arizona location. Its Phase 1 presence at the project will include approximately 200 employees. At full ramp up, TriColor expects the site to employ up to 500.
John Lydon, Kelly Royle and Anthony Lydon from JLL’s Phoenix office represented BlueScope. Andy Thomas of HPI Real Estate represented TriColor.
“BlueScope originally planned Blue Cactus Logistics as fully speculative, but interest from TriColor quickly shifted the development to a build-to-suit,” said John Lydon, Executive Vice President, JLL. “The developer’s ability to deliver modern new industrial space, combined with this site’s ability to accommodate heavy auto parking, was the perfect combination, especially considering the high-demand characteristics of the metro Phoenix industrial market.”
According to JLL, metro Phoenix industrial tenants represented 18.7 million square feet of leasing in 2023.
Based in Missouri, BlueScope Properties Group provides commercial real estate development throughout North America, with a connection to a builder network of more than 2,000 contractors who understand local building codes and market fundamentals. Fleming Construction is the general contractor for Blue Cactus Logistics and GH2 is the project’s architect.
In Phoenix, JLL is a market leader employing more than 527 of the region’s most recognized industry experts offering office, industrial, retail, healthcare and data center brokerage, tenant representation, facility and investment management, capital markets, multifamily investments and development services, and related services within the real estate leasing, investment and management process. In 2022, the Phoenix team completed almost 115 million square feet in lease and sale transactions, with a total transaction volume of more than $11.4 million, and directed $180 million in project management. For further information, visit jll.com.
