Crane company signs $7.9M lease to keep up with Valley’s construction growth
NAI Horizon represented the landlord, a Chicago-based real estate investment and development company, in negotiating a long-term lease for a regional crane company in need of additional space to keep up with the Valley’s construction growth.
NAI Horizon Senior Vice President Isy Sonabend and Agent Drew Eisen represented Industrial Outdoor Ventures (IOV) of Schaumburg, Illinois, in a long-term lease worth $7.9 million at 2600 W. McDowell Road in Phoenix. Bragg Crane, one of the most notable crane services in the Southwest U.S., has experienced a substantial increase in business despite the COVID-19 pandemic.
IOV is the only national real estate investor that specializes exclusively in outdoor storage facilities. IOV specifically focuses on providing real estate solutions for heavier industrial uses in major markets throughout the U.S. such as truck terminals, equipment maintenance facilities, contractor yards and bus-parking yards.
“With redevelopment and value-add deals as a primary focus, 2600 West McDowell Road fell right within IOV’s wheelhouse as it had been vacant for a long time and presented a unique renovation opportunity with an upside for both the landlord and prospective tenant,” Sonabend said.
Bragg Crane’s expansion will establish a new Arizona headquarters in the IOV-owned building that will house its administration services, 11 acres of land for outside storage and more than 40,000 SF of service, maintenance and warehouse structures.
“Bragg Crane expanding its operation and creating new jobs to keep up with the region’s construction demand is another positive sign for Greater Phoenix’s economy,” said Chris Camacho, President and CEO of the Greater Phoenix Economic Council. “We congratulate NAI Horizon on finalizing this deal, and their work to support our growing market and the needs of industry.”
Construction projects have led to the largest concentration of tower cranes ever in Downtown Phoenix, Sonabend said. Construction industry experts predict that Arizona skylines will be much busier in 2021.
“The site is currently being modernized and renovated in preparation for Bragg’s occupancy. The site’s central location with close proximity to major Phoenix freeway systems serves as a convenient factor for both Bragg Crane and its clients. Bragg’s expansion truly reflects the continuing demand for construction around the Valley,” Eisen added.
Bragg Crane was represented by Chris McClurg of Lee & Associates.
“The growth of Bragg Crane – indicating an ever-increasing volume of construction projects – underscores Arizona’s strong economic momentum and the effectiveness of our state’s pragmatic approach to navigating the pandemic,” said Sandra Watson, President and CEO of the Arizona Commerce Authority. “We
congratulate Bragg Crane on its growth, as well as the teams at NAI Horizon and Lee & Associates on this successful project.”