Prologis acquires 8-acre Phoenix parcel for $8.65 million
DAUM Commercial Real Estate Services, a leading provider of commercial real estate services including brokerage, tenant representation, consulting, leasing, sales, and property management, has directed the acquisition by Prologis of a 7.95-acre land parcel located in Phoenix, Arizona.
DAUM assisted industrial developer and REIT Prologis in acquiring the rare infill parcel off-market from Wadsworth Development for $8.65 million to develop two industrial buildings totaling 126,000 square feet, according to Bob Lundstedt, First Vice President at DAUM Commercial. Lundstedt, along with Skip Corley, Jr., Executive Vice President at DAUM, Chase Heinemann, Associate Vice President at DAUM, and Parker Houston, Associate Vice President at DAUM directed the transaction.
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“Drawing on our deep expertise and long-standing relationships in a very tight land market, we were able to deliver one of the last infill sites in Phoenix’s Deer Valley submarket for our client,” says Lundstedt. “As one of the largest industrial REITs and developers in the country, Prologis was aggressively looking to develop in Deer Valley and actively pursued this site. Our team leveraged our nuanced knowledge and nurtured partnerships in the area to help the buyer acquire the parcel off-market in a transaction that was advantageous to all parties.”
According to a DAUM report, as freight costs declined 61% during the quarter, the industrial sector nationwide is expected to benefit from this easing of supply chain headwinds. The Phoenix industrial market vacancy rate remained low at 4.6% in Q3, with rental rates continuing to rise, and the market has been named as a leading metro for industrial development, ranking second nationally in 2022.
“At less than 20 miles from the city of Phoenix, the Deer Valley submarket offers access to a major Arizona metro and is an ideal target market for developers,” says Lundstedt. “Our team identified and secured a much in-demand land parcel in an area that is highly desirable for industrial development.”
Adding to its extensive current Deer Valley portfolio, Prologis will develop two industrial assets on the site: an approximately 77,000 square-foot building and a roughly 49,000 square-foot building. The DAUM team of Lundstedt, Corley, Heinemann and Houston has been selected to handle the leasing for the project.
The land parcel is located at 24500 – 24501 N. 20th Dr. in Phoenix, Arizona.