IndiCap, Invesco and the Phoenix office of JLL have joined with local dignitaries and project partners to celebrate the groundbreaking of Virgin Industrial Park, a five-building, 1.5 million-square-foot Class A industrial project being constructed in the booming Loop 303 Corridor, in metro Phoenix’s West Valley.
The project is being developed by IndiCap, a boutique commercial real estate company specializing in industrial investment and development in the Southwest, and Invesco, a global leader in the real estate investment management business.
JLL Executive Managing Directors Marc Hertzberg, Managing Director Riley Gilbert and Associate Kelly Royle are the project’s exclusive leasing brokers. The general contractor is Graycor Construction and the project architect is Deutsch Architecture Group.
Construction on Virgin Industrial Park begins with Phase I, which includes three Class A industrial buildings totalling 566,121 square feet, 244,958 square feet and 213,765 square feet. Phase I is scheduled for completion during the first quarter of 2024.
IndiCap and Invesco secured a loan for $88 million in late 2022 for construction of Phase I. That was followed shortly by a loan to purchase the land for Phase II, which will add an additional two Class A industrial buildings totalling 297,439 square feet and 235,040 square feet. Phase II is projected to break ground during the third quarter of 2023. The site is fully improved and so is also available for immediate built-to-suit opportunities.
“IndiCap is bringing the precise type of Class A industrial product needed to meet Maricopa County’s sophisticated industrial demand,” said Maricopa County Chairman Clint Hickman. “Having this type of product in our inventory allows us to target and attract premier industries, who in turn generate high-quality jobs for our West Valley residents. We appreciate IndiCap’s desire to build here and look forward to our continued partnership.”
“We earmarked metro Phoenix years ago as a booming industrial growth market, and since then have proudly, and steadily, expanded our local footprint of Class A projects in highly sought-after locations,” said IndiCap Principal Mike Chernine. “We are very excited to add Virgin Industrial Park to that growth, alongside a truly exceptional project team.”
Buildings at Virgin Industrial Park feature 32’ to 36’ clear height with up to 60’ x 60’ column spacing, ESFR sprinkler systems and dock-high and grade-level doors, linked to 60’ to 70’ speed bays. The project also offers 3,000 amps of power, secured truck courts and parking for more than 2,200 autos and 167 trailers.
Virgin Industrial Park is located on the northwest corner of Olive and Reems Roads in Maricopa County. It sits within the nationally recognized Loop 303 industrial corridor and immediately north of Northern Parkway, a 12.5-mile expressway connecting the Loop 303 and US 60, offering a traffic reliever to nearby Interstate 10.
“Metro Phoenix industrial demand continues to outpace new supply – to the tune of 4.6 million square feet in the last quarter alone,” said Hertzberg. “The West Valley, in particular, is in tremendous demand by tenants wanting strategic access to West Coast ports, direct transportation links to Mexico and accessibility to the Valley’s skyrocketing population, as well as the more than 33 million people who can be reached within a one-day drive of this submarket. IndiCap and Invesco understand these dynamics and are delivering a very relevant product at the perfect time.”
When complete, Virgin Industrial Park will join more than 30 million square feet of commercial real estate developed by IndiCap throughout the U.S. industrial, office, and retail sectors. Invesco has more than 20 ground-up developments totalling nearly $8 billion in stabilized value in the West Coast alone.
Formed by real estate industry leaders Mike Chernine and Jason Kuckler, the IndiCap development team brings over 100 years of collective experience to the Arizona and Nevada real estate markets. Todd Ostransky, IndiCap’s Vice President of Development (AZ), and Geovanni Villalta, IndiCap’s Senior Development Manager (AZ), lead all Arizona development projects. Through their strong local relationships, IndiCap continues their pursuit of prime industrial land in the Phoenix metroplex.