Hines, the international real estate firm, acquired the Southwest Industrial Center from Hillwood Property Trust for $47.3 million.
The Class A industrial park is located in the heart of the Southwest Valley submarket in Phoenix at Buckeye Road and 75th Avenue.
The project consists of a 684,000-square-foot, 32-foot clear logistics warehouse and an adjacent development parcel capable of accommodating a second building of 567,000 square feet.
The existing building is 35 percent leased to AmerisourceBergen, a market leader in pharmaceutical distribution, who is currently No. 16 on the Fortune 500.
Palmer Letzerich, senior managing director at Hines, said, “Our logistics group is excited to continue our expansion in Phoenix with what we see as the Southwest Valley’s premier property. With our recent investment in Goodyear and this new acquisition at Buckeye and 75th, we are pleased with our growth in the Southwest Valley. As part of our commitment to the Phoenix market, we are now targeting investments in the Sky Harbor airport submarket.”
Hines has assigned the leasing assignment to the Tony Lydon/Marc Herzberg team at JLL. The acquisition of Southwest Industrial Center is Hines’ second logistics investment in Phoenix and brings the Hines logistics platform to over 5.1 million square feet in the Southwest Region of the United States.
Hines Managing Director Charlie Meyer noted, “The Southwest Industrial Center is a quality asset that we feel we can position immediately to meet the growing tenant demand in the Southwest Valley. We are aggressively targeting tenants of up to 455,000 in the existing building and have the flexibility to accommodate build to suits of up to 570,000 on our development parcel. We look forward to working with JLL on a successful lease up of building 1 and on the development of building 2.”