Cushman & Wakefield announced the firm has advised the sale of a 100% leased, six-building industrial portfolio totaling 860,249 square feet in Phoenix to EQT Exeter. Located within the popular Phoenix Gateway Airport submarket, the industrial property is fully leased to eight tenants across diverse industrial industry sectors.
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The property sold for an undisclosed price to EQT Exeter, the real estate division of EQT, a purpose-driven global investment organization. EQT Exeter is a global real estate investment manager with nearly $30B of equity under management. The company will execute a plan to strategically upgrade buildings by air conditioning the warehouse, adding LED lighting, and renovating office suites as leases roll throughout the portfolio.
Cushman & Wakefield’s Will Strong, Michael Matchett and Molly Hunt of the firm’s National Industrial Advisory Group – Mountain West represented the seller in the transaction. Cushman & Wakefield’s Mike Haenel provided market leasing advisory in the sale.
“This is an exceptional portfolio of Phoenix industrial real estate, offering both scale and quality. With a diverse, stable group of tenants and staggered lease expirations, it minimizes risk and income fluctuations. Plus, there’s a great opportunity to boost net operating income soon with rent adjustments to current market rates,” said Molly Hunt.
“These buildings are a great fit for both multi-tenant users and single-tenant occupiers, with spaces ranging from 37,000 to 220,000 square feet. That variety gives the buyer plenty of leasing options in the future,” said Mike Haenel.
Each property is conveniently located near major highways like I-10, I-17, and SR-60, with the added benefit of the 22-mile Loop 202 extension. Plus, their proximity to Downtown Phoenix puts them near one of the largest labor pools in the Western U.S. “This kind of accessibility is tough to replicate, making these properties highly attractive to both tenants and investors,” Haenel added.
According to Cushman & Wakefield’s most recent Q2-2024 market report, vacancy in the Airport submarket stood at a healthy single-digit rate of 6.2% and has recorded nearly 1.4 MSF of new leasing activity through the first half of 2024.
