DPC Companies, Colorado-based commercial real estate owner and developer, and Confluent Development, a Denver-based real estate investment and development firm, are partnering to deliver an industrial project in Phoenix. The partnership has acquired a former grocery warehouse building located in the heart of the Sky Harbor airport submarket. The firms will redevelop and expand the existing building into a class “A” distribution center named HUB 317.
The development will feature 225,000 square feet of distribution/industrial space for lease, designed to accommodate multiple large tenants. Improvements will commence immediately on the existing building with groundbreaking on the expansion planned for November. The state-of-the-art distribution building will feature 32-foot clear ceiling/stacking height, dock high loading and superior access that will deliver in spring 2018.
Located at 317 South 48th Street, directly adjacent to Sky Harbor International Airport, HUB 317 will be the newest building providing visibility and direct access to Highway 143, with immediate connectivity to the Phoenix metro area. The airport submarket is experiencing a wave of industrial development due to its central location and the high demand for industrial space in the market.
“We are pleased to expand our presence in the Valley and add to our 700,000-square-foot commercial office and retail portfolio,” said Chris King, president and CEO of DPC Companies. “We have wanted to expand our industrial presence in the Valley, and through our partnership with Confluent we intend to build our platform here. We have had success with our 3200 N Central Avenue and Bell Tower Shopping Center assets, and we are very bullish on the Phoenix market.”
The project marks the first partnership between Confluent Development and DPC Companies. While DPC Companies has a longstanding history in Phoenix, the project signifies Confluent Development’s first ground-up development in the market, having previously co-acquired the MorningStar at Arrowhead senior living community in Glendale in 2015.
“We are honored to partner with DPC Companies as strong players in the Phoenix development industry,” said Celeste Tanner, chief development officer at Confluent Development. “Our firm has a history of delivering successful industrial developments, and is thrilled to introduce our capabilities to the Phoenix market.
Justin Lutgen, DPC Companies’ vice president overseeing all Arizona operations will direct the project. With a local Phoenix office, Ware Malcomb is serving as the architect on the project. Ken McQueen and Chris McClurg, principals with Lee & Associates, are serving as the leasing agents.