Cushman & Wakefield has advised the sale and acquisition financing for Broadway 101 Commerce Park, an 809,230-square-foot Class A multi-tenant industrial park spanning 11 buildings on ±53 acres in Mesa, Arizona. The sale set several local records including: the largest Phoenix industrial sale in 2024, the largest legacy industrial sale in the history of Phoenix, and the largest single transaction for an industrial park in Phoenix’s Southeast Valley.

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Built in 2005 through 2007, the modern property is strategically situated in the heart of Metro Phoenix within the highly coveted infill Phoenix Sky Harbor Airport/Tempe area. The project is currently 98% leased to a strong and diverse roster of 34 tenants.

The property was purchased for $168.3 million by Irvine, CA based CIP Real Estate, a full-service real estate investment company focused on the acquisition, repositioning, re-branding, and management of industrial assets throughout West Coast, Southeast and Texas markets. The seller was Canyon Partners Real Estate LLC, the real estate direct investing arm of Canyon Partners, LLC, a global alternative asset manager with over $26 billion in assets under management. 

Cushman & Wakefield’s Will Strong, Michael Matchett, and Molly Hunt of the firm’s National Industrial Advisory Group – Mountain West represented the seller in the transaction. The firm’s Mike Haenel, Andy Markham, Phil Haenel, and Justin Smith also provided local advisory and were retained by the buyer to continue leading leasing for the 809,230 SF project.

Additionally, a Cushman & Wakefield Equity, Debt & Structured Finance (“EDSF”) team including Rob Rubano, Brian Share, and Joseph Lieske arranged the $93.8 million acquisition loan from institutional investors advised by J.P. Morgan Asset Management on behalf of CIP Real Estate.

“Due to its solid fundamentals, the dynamic Phoenix Metro has maintained great investor momentum throughout 2024. Broadway 101 represented an outstanding opportunity to acquire historically one of the best performing Class A industrial parks in metro phoenix, a rare infill project of scale,” said Will Strong.

“Our IAG-Mountain West team—in many instances in collaboration with our EDSF and/or Leasing teams—has been fortunate to be part of numerous major sales in the area in recent years with many great and visionary clients, including this prolific transaction,” added Strong.

“The response from lenders was overwhelmingly positive, and a great example of a broader market theme—that debt capital markets are wide open and competitive for quality industrial product in good markets. The diverse rent roll, mark-to-market opportunity, and solid loan metrics for top tier sponsorship made this a very attractive opportunity,” said Brian Share, Executive Managing Director, EDSF who led the acquisition financing process.

Located at 2140-2360 West Broadway Road, Broadway 101 Commerce Park consists of eleven (11) warehouse/ industrial buildings totaling 809,230 SF. In addition, the industrial park features 125 grade level doors and 109 dock-high doors.

The property is close to Loop 101, Loop 202, and US-60 freeways, ensuring excellent connectivity and accessibility to major transportation routes. Additionally, the location is near the light rail, Downtown Tempe, and the Phoenix Sky Harbor Airport, and is also within a 30-minute commute of 67% of the entire Phoenix Metro area population (±3M people).

“Broadway 101 Commerce Park is a high-performing, trophy industrial asset that is well-positioned in one of the top job-creating economies in the US. The property’s award-winning design and layout have been thoughtfully developed to meet and maintain the highest institutional standards,” said Mike Haenel. “The multi-tenant asset boasts a diverse tenant mix that has ensured occupancy stability historically.”

According to Cushman & Wakefield’s latest Q3 2024 market report, vacancy in the Phoenix Airport submarket stood at a healthy single-digit rate of 6.5%. Its average asking rate stood at $1.17 per square foot NNN per month, which is $0.05 above the Phoenix Metro’s overall average.