Kitchell Development Company acquired nearly 20 acres at Interstate 10 and 28th Street, just south of Sky Harbor Airport in Phoenix for an industrial development.
“Over the years we have developed several types of commercial projects including retail business parks, and multifamily, depending on the market climate,” said Senior Director of Development Ryan Cochran. “We’re expanding our presence in the industrial market, and this property is an ideal location for that type of development.”
Scottsdale-based Aspen Group has an ownership interest in the venture. Aspen Group has been an active developer of shopping centers and master-planned communities over the past 20 years.
The 19.85-acre site is south of Interstate 10 at the northeast corner of 28th and Elwood streets, a premier location due to its freeway access and visibility, low vacancy rates in the submarket, and strong tenant demand. The acquisition was made in three separate transactions, with the joint venture represented by John Werstler of CBRE, who will also handle marketing of the property. The development will consist of one or two buildings totaling 250,000 to 290,000 square feet.
According to CBRE’s quarterly market report, the overall industrial vacancy rate in the Phoenix metro market is 11.12 percent, with positive net absorption in each quarter over the past four years. There has been 3.7 million square feet of net absorption of industrial space through the second quarter of 2014.
“We’re bullish on the local industrial market and believe metro Phoenix will remain a viable distribution alternative to the coastal markets,” Cochran said.
