Cushman & Wakefield announced the firm served as the exclusive advisor to Echo Real Estate Capital, Inc. & Grandview Partners in the procurement of $53.55 million in construction financing for the development of Northern Parkway Logistics Center, a premier 676,169-square-foot (sf) speculative industrial project in Glendale, Arizona. The lender is PCCP, LLC.    

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A Cushman & Wakefield Equity, Debt & Structured Finance (EDSF) team of Rob Rubano, Brian Share, Max Schafer and Michael Gianesello represented the borrower in the transaction. Will Strong, Kirk Kuller, Micki Strain, and Molly Hunt of the firm also provided local market advisory.

Situated on ±38.6 acres, Northern Parkway Logistics Center will consist of two Class-A industrial buildings: a 220,240-sf rear load building and a 455,935-sf cross dock building. The project will include state-of-the-art features and functionality, including 32’-40’ clear heights, excellent loading and trailer parking, fully gated and secured concrete truck courts, above-market power, and ample parking. The project’s general contractor is LGE Design Build, one of the region’s most decorated general contractor and design firms.

“Capital markets are choppy, but debt capital remains available for the right projects,” said Brian Share, Executive Managing Director, EDSF. “Northern Parkway represents the best of what lenders want today: a quality project and location in a market with strong fundamentals, solid underwriting metrics, and experienced sponsorship.”

“We’re thrilled with the outcome for Echo and Grandview. PCCP will be a great lending partner,” said Rob Rubano, Vice Chairman, EDSF. “Phoenix industrial has been a significant part of our institutional debt business. We’ve placed over $1.3 billion of industrial loans there in the last couple years and continue to see momentum.”

“Phoenix remains top of mind for investors looking to capitalize on high-growth markets with incredible leasing fundamentals. Arizona is one of the most business-friendly states in the nation, which attracts a variety of tenants who are looking to grow and expand their business. We see population and employment growth, cost of living, proximity to southern California, and a pro-business government propelling the industrial markets as a whole,” added Will Strong, Executive Vice Chairman and co-head of Cushman & Wakefield’s National Industrial Advisory Group.

The Loop 303’s connectivity to Interstates 10 and 17 creates excellent transportation and employment opportunities in the Phoenix metro while other major consumer markets are easily accessible via I-10. The critical ports of Long Beach and Los Angeles are also less than six hours away by vehicle.    

According to Cushman & Wakefield’s Q4-2022 market report, direct industrial vacancy in the overall Phoenix market was a healthy 4.4%. Vacancy in the Southwest Valley submarket, where Northern Parkway Logistics Center is located, was 4.6%. The Phoenix market saw a robust 21.7 million square feet of occupancy growth in 2022, with the Southwest Valley submarket accounting for 15.8 MSF.