Newmark announced it has completed the sale of Foothills Corporate Centre I, a 110,360-square-foot value-add office building in Phoenix, Arizona. Newmark Executive Managing Director CJ Osbrink and Managing Director Scott Scharlach led the sale with along with Co-Head of U.S. Capital Markets Kevin Shannon. Newmark represented both the seller, SDC Foothills, Inc., a global investment manager, and the buyer, WG Group. This was WG Group’s first acquisition in the Phoenix market.
Located at 14415 S. 50th Street in Phoenix, Foothills Corporate Centre I is a single-story, 110,630-square-foot back office building offering excellent visibility and easy highway access. At the time of sale, the property was 64% leased to one tenant. The new owner plans to convert the property to flex/light industrial space to capture growing demand in that sector.
“Foothills Corporate Centre’s existing infrastructure and clear heights coupled with a highly accessible location make it an ideal candidate for a flex conversion,” said Osbrink. “We are pleased to have executed favorable terms for both parties involved and look forward to seeing the buyer’s redevelopment plans play out.”
Situated immediately adjacent to the Interstate-10 Freeway—one of Arizona’s most heavily trafficked thoroughfares—Foothills Corporate Centre benefits from excellent visibility, within view of approximately 206,000 vehicles on an average day. The property also presents easy access off of Ray Road and the I-10 Freeway with prominent building and monument signage available on the I-10. The amenity-rich location offers an abundance of walkable and short-drive restaurants and retail.
According to Newmark Research, the Phoenix industrial market is growing in prominence as an important regional hub within the Southwestern U.S. The port markets in Southern California are constrained by extremely low vacancy, near or below 1%, and the Phoenix market is located within a one-day truck drive of Southern California, as well as having an abundance of land available on a relatively low-cost basis. Additionally, Phoenix is also well connected (a one-day truck drive) to the burgeoning Western metros of Las Vegas and Salt Lake City. The above factors together with strong population growth, particularly from domestic migration, are driving the Phoenix industrial market to new heights.