The joint venture of Tempe-based Metro Commercial Properties and Principal Real Estate Investors of Des Moines, Iowa announced the commencement of development for five new light industrial properties totaling 406,575 square feet to be added to the fully-occupied Metro East Valley Commerce Center.
The buildings are the newest additions to the successful Metro East Valley Commerce Center at US 60 and Mesa Drive in Mesa. Metro East Valley Commerce Center currently consists of six existing buildings totaling nearly 700,000 SF, which is currently fully leased.
Janet Herlyck, Executive Vice President at Metro Commercial added, “We expect increased commercial growth, not just from large corporate users, but also from the small and medium sized businesses that are beginning to regain confidence and reinvest to grow their business in Arizona.”
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The five new buildings, which range from 58,000 SF to 112,000 SF, are designed by Scottsdale-based McCall & Associates Architects and will be constructed by Phoenix-based Graycor Construction, with completion scheduled in late Q4 of 2021. The buildings can accommodate tenant sizes as small as 6,000 SF and as large as 112,000 SF, with each tenant suite possessing both dock-high and grade-level loading capabilities. The buildings offer a diverse mix of clear-heights (up to 32 feet), along with healthy quantities of convenient employee and customer parking.
Metro East Valley Commerce Phase Three is the twelfth commercial development in metropolitan Phoenix between Metro Commercial Properties and Principal Real Estate Investors.
“Principal Real Estate Investors has been a consistent and reliable joint venture partner for Metro Commercial Properties since our first joint venture build-to-suit in Tempe over 30 years ago,” stated Ryan Foley, Co-Managing Principal of Metro Commercial Properties.
The brokerage team of Chris McClurg, Ken McQueen and Kurt Saulnier of Lee and Associates represented the transaction and has commenced efforts to secure lease commitments for the five new buildings. The joint venture’s construction loan was secured in late March with Regions Bank.
“We remain confident in the strong industrial absorption in the Southeast Valley and believe that with Arizona’s continued solid in-migration, pro-business climate, and the recent commitments from new technology and aerospace corporate users to the market, that a strong growth trajectory is sustainable.” said Kurt Saulnier, principal at Lee and Associates.
Upon its completion later in 2021, the 11-building, 1.1 million square foot Metro East Valley Commerce Center will be one of the largest master planned commerce parks in the entire Southeast Valley.
The new development is the final undeveloped land site originally assembled by Craig and Nancy Berge, adjacent to the former Berge Ford dealership (now Larry H. Miller Ford) prominently situated on the corner of the US 60 at Mesa Drive.
“We have built a wonderful relationship with the Berge Family, guided by their trusted business manager Scott Ellsworth, during the acquisition of the 67-acre land investment over three separate transactions in 2015, 2018 and 2020,” said Tony Hepner, Co-Managing Principal of Metro Commercial Properties. “We view the Berge Family as a trusted partner in the success of Metro East Valley Commerce Center.”
