In a $37.98 million deal, Lincoln Property Company announced the completion of the sale, Wednesday, of a five-building Northwest Phoenix industrial portfolio to Colorado-based REIT Industrial Property Trust, Inc.
The deal includes Lincoln Deer Valley and Lincoln Pinnacle Park assets.
“These buildings are 97 percent NNN leased with staggered expirations, and below-market rents that deliver a long runway of upside potential for the new owner,” said Amr Ceran, Lincoln Property Company vice president.
The Lincoln Deer Valley project is located at 21420 and 21430 N. 15th Ln. in Phoenix, and Lincoln Pinnacle Park is located at 23040 N. 11th Ave. in Phoenix – on sites to the direct north and south of Phoenix Deer Valley Municipal Airport.
Together, the buildings total 340,646 square feet of state-of-the-art, Class A single and multi-tenant industrial space. They provide a range of suite sizes to meet the needs of a wide variety of users – a combination that has attracted 19 unique tenants including Petsmart, Alstom, Reynaer’s, US Air Conditioning Distribution and California Closets. Industrial neighbors include Honeywell and FedEx.
Constructed between 2005 and 2006, Lincoln Deer Valley and Lincoln Pinnacle Park offer 24- to 30-foot minimum clear heights, ample trailer storage and car parking.
They are located approximately 2.5 miles from one another with direct access to I-17 and the Loop 101 freeway. Tenants also benefit from Foreign Trade Zone status, providing state and local tax incentives and on-site job training programs.
Darla Longo, Barbara Emmons, Dan Calihan and Pat Feeney of CBRE represented LPC in the sale.
“Phoenix’s industrial market is flush with active, growth-minded companies who have pushed industrial vacancy rates to near single-digit status,” said Alisa Timm, LPC director of management services. “Much of this activity is happening in the 5,000-square-foot to 50,000-suare-foot range – the precise type of tenants who occupy projects like Lincoln Deer Valley and Lincoln Pinnacle Park. This requires a broad understanding of property management, but it also creates very diverse opportunities for our team to shine.”
LPC purchased the five-building portfolio in 2011 from Cornerstone Real Estate Funds as part of a strategy to purchase and stabilize core, institutional-grade industrial space. Through an aggressive leasing plan, LPC – in partnership with Steve Sayre, Pat Harlan and Kyle Westfall of JLL – improved the project from 70 percent to nearly 100 percent occupied.
