IndiCap, a commercial real estate firm specializing in industrial investment and development across the Southwest U.S., and VAC Development, a real estate investment and operating company, have partnered with Mar-Gulf Management Inc. (“Mar-Gulf”), the international real estate subsidiary of Kuwait Financial Centre K.P.S.C. (“Markaz”), and MDI Capital, LLC (“MDI”), the subsidiary of Mar-Gulf, to break ground on Chandler Bay, a new Class A shallow bay industrial project in Chandler, Arizona. The project’s groundbreaking event took place on Tuesday, April 14, and included project partners, city officials, and other stakeholders.

Located at 1820 E. Germann Road at the northwest corner of Germann Road and Cooper Road, the $25.3 million development will bring highly flexible industrial space to one of the Southeast Valley’s most active industrial corridors.

The project marks the second joint venture between IndiCap and VAC Development, following the successful launch of Bethany Bay in Glendale in 2025. Designed to serve small to mid-sized industrial users, Chandler Bay will offer modern, power-equipped space with convenient freeway access and flexible suite configurations.

The development will feature a 110,481-square-foot Class A shallow bay industrial building designed to accommodate multiple tenants in efficient, flexible spaces.

Rendering provided by IndiCap.

Key building features will include a 28-foot clear height and column spacing of 50’ x 56’ feet and 60’ x 56’ feet. The facility will be equipped with 12 truck well dock doors and 15 grade-level drive-in doors, along with a total power capacity of 5,000 amps, approximately double of other similar projects. Additional features include an ESFR sprinkler system with electric pump, 120’–145’ truck court depth, and parking ratio of 2:1,000 square feet for 221 vehicles.

Tenant suites will be designed at around ±9,000-square-foot bay sizes, with three spec office suites ranging from approximately 1,700 to 2,200 square feet delivered during shell construction. Each suite will include expandable 400-amp power service, LED warehouse lighting, and fully air-conditioned warehouse space.

“Chandler Bay is designed to meet the growing demand for highly functional small-bay industrial space in the Southeast Valley,” said Mike Chernine, chief executive officer at IndiCap. “Its proximity to the Loop 202 freeway, significant power capacity, and flexible suite layouts position the project to serve a wide range of users who need modern space with immediate accessibility.”

Located just half a mile from the full interchange at Cooper Road and the Loop 202 freeway, Chandler Bay offers exceptional connectivity for regional distribution, service-based operations, and light manufacturing users. The project will also feature a dedicated will-call area, designed to support businesses with frequent customer pickup needs.

Once completed, Chandler Bay is expected to be the only shallow bay industrial project in the area capable of accommodating tenants seeking approximately 17,000 square feet, addressing a growing gap in the Southeast Valley industrial market.

“In today’s market, small and mid-sized industrial users continue to face limited options for modern space,” said Andrew Dunn, principal at VAC Development. “Chandler Bay builds on the momentum of our first project with IndiCap and reflects our shared commitment to delivering flexible, well-located developments that meet real demand in the market.”

“Chandler Bay aligns with our strategy to partner with experienced developers on well-located projects that address clear supply gaps in the market,” said Sandeep Pathak, Chief Executive Officer of Mar-Gulf. “We see continued demand for modern, small- to mid-sized industrial space in the region.”

Project Team and Partners:

Transaction and capital markets efforts were led by Mike Chernine of IndiCap and Andrew Dunn of VAC Development, with project entitlements and preconstruction managed by Todd Ostransky and construction oversight led by Geovanni Villalta. The project site closed on March 13, 2026, with construction beginning in late March. Project completion is expected in December 2026.