Dermody Properties, a national private equity real estate investment, development and management company focused exclusively on the logistics real estate sector, announced the acquisition of 1,000.46 acres of land in El Mirage, Ariz., a suburb of Phoenix, which will be developed into Copperwing Logistics Center, one of the largest industrial parks in Arizona’s history. The cost was $52,326,525, according to the commercial real estate tracking website Vizzda.
Initial development is expected to begin in 2022. Dermody Properties will develop approximately 10 million square feet of speculative space over the next 10 years and will develop approximately 300 acres for other third-party owner/users and build-to-suit customers.
“The Phoenix metropolitan area is one of the fastest-growing regions in the country and is experiencing unprecedented industrial growth with more than 20 million square feet of development per year, falling in line with parts of the Inland Empire in Southern California,” said Pat Gallagher, Southwest Region Partner at Dermody Properties. “With the acquisition of land at this scale, Dermody Properties intends to create a best-in-class industrial park that is unlike any other similar development in Arizona. We appreciate Novo Development bringing us this unique opportunity.”
Novo Development, which has been involved with the project since its inception, will continue to assist with this new venture.
The land is being purchased from the John F. Long Family Trust, known for developing more than 30,000 homes over four decades, including Arizona’s first master-planned community, before focusing efforts on retail and commercial projects in the West Valley Arizona market.
“Our family has owned this property for a number of years,” said Jacob Long. “Our goal was always to create a world-class employment & industrial complex, while providing land use support to protect the operation of Luke Air Force Base. This is a goal we have shared with the City of El Mirage for many years. We believe strongly that Dermody Properties shares this vision and will carry it forward.”
Located with immediate access to the newly developed Northern Parkway Expressway, the park is approximately 3.5 miles from the Loop 101 and Loop 303 freeways. The industrial park is expected to attract large distribution users and companies with manufacturing operations because of the area’s strong labor base and easy access to Phoenix and most western markets. Additionally, the area is a popular location for data center users as the region has an attractive power grid, low catastrophic risk and abundant fiber networks.
Industrial zoning was already in place for the land. In addition, the property is within an approved Foreign Trade Zone (FTZ), meaning companies within the park that are active users of FTZ can receive up to a 75% reduction in real estate and personal property taxes. Dermody Properties also intends to bring new water and sewer sources to the site along with new roads and park amenities.
“This development will have a significant impact on the Phoenix market, including an influx of jobs and economic benefits,” said Douglas A. Kiersey, Jr., President at Dermody Properties. “For Dermody Properties, this investment is consistent with our strategy of sourcing projects dedicated to serving the distribution network needs of both new and existing customers.”
Pat Feeney, Rusty Kennedy and Dan Calihan of CBRE are the leasing brokers for the industrial park.