Cushman & Wakefield has advised the sale of a four-building, multi-tenant light industrial complex totaling 110,679 square feet in the sought-after Deer Valley submarket in Phoenix, Arizona. The property is 95% leased to 34 tenants, collectively representing a diverse range of industries including several that are directly related to the semiconductor industry. The property was acquired by Boston based Albany Road Real Estate Partners for $22.4 million.
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Cushman & Wakefield’s Will Strong, Kirk Kuller, Michael Matchett, and Molly Hunt, of the firm’s National Industrial Advisory Group – Mountain West represented the Deer Valley industrial complex seller, Baron Properties, in the transaction. Daum Commercial’s Trevor McKendry, Chris Rogers and Dan Casey provided leasing advisory.
“This is a stabilized and strong performing light industrial property within the niche small-bay asset class, which can accommodate a variety of user types and therefore continues to see demand from investors. Furthermore, the complex’s location in the Deer Valley submarket, where industrial demand has seen great growth driven by the expanding semiconductor and advanced manufacturing industries, enhances its profile as a long-term investment,” said Associate Molly Hunt.
“The Deer Valley submarket has benefited from the overflow of Southern California’s Inland Empire market, as well as an influx of advanced manufacturing tenant demand from suppliers moving to Phoenix to serve the Taiwan Semiconductor Manufacturing Company (TSMC) plant,” added Molly Hunt.
Situated on ±5.7 acres, the four buildings are located at 23005, 23015, 23021, and 23025 North 15th Avenue. The complex is strategically positioned close to I-17 and Loop 101, both connecting to I-10, and is proximate to major retail, dining and shopping amenities including Happy Valley Towne Center and The Shops at Norterra.
According to Cushman & Wakefield’s latest market stats, Phoenix Metro’s industrial market vacancy was a healthy 4.4% in Q2 2023 combined with a solid 7.1 million square feet of occupancy growth through the first half of 2023. Vacancy in the Northeast Valley industrial market, where the asset is located, was just 1.9% at midyear 2023.
