CRG, the Chicago-based real estate development and investment management firm, today announced the sale of Building E at The Cubes at Glendale – a 570,080-square-foot Class A industrial warehouse located along the 303 Corridor in Glendale, Ariz. – to Fundrise, a leading real estate investment firm headquartered in Washington, D.C. The purchase price for the facility, which was developed speculatively in 2022 and completed in January 2023, was $82.6 million. 

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Upon completion, The Cubes at Glendale industrial park will feature 5.5 million square feet of Class A industrial space at the Reems Road and Northern Avenue intersection. In 2022, CRG successfully completed construction on Building A, a 1.2-million-square-foot industrial building leased to Williams Sonoma and sold to LaSalle Investment Management, and Building D, a 637,000-square-foot industrial building sold to US Merchants.  

“The sale of Building E at The Cubes at Glendale reaffirms the strength of The Cubes brand and our broader Southwest industrial development strategy amid strong user and investor demand,” said Mark Sonnenberg, senior vice president of the Southwest Region and partner for CRG. “Real estate-focused investors in industrial space are very discerning in terms of market, building quality and tenancy, which we anticipate from the earliest stages of each project. We continue to benefit from the Phoenix market’s strength and explore development opportunities throughout the region with similar labor, infrastructure and location adjacencies.”  

The Cubes at Glendale is minutes from the confluence of Loop 303 and the Northern Parkway, ideally located to serve Arizona and other key markets in the western United States, including Southern California, Nevada, Utah, Colorado and New Mexico. Building E has immediate access to North Parkway and is 1.5 miles from Loop 303, a full diamond interchange at Northern Avenue and Glendale Avenue. The project is also 6.5 miles from Interstate 10, and 30 miles from Phoenix Sky Harbor International Airport.  

“Phoenix is a really important part of CRG’s strategy and we have been thrilled with the success of The Cubes at Glendale,” said Shawn Clark, president of CRG. “The West Valley submarket has been a primary focus for our team, as it has become an industrial hotspot due to its strong labor market and business-friendly fundamentals.” 

The cross-dock warehouse features 40-foot clear heights, 620-foot building depth, high-efficiency LED lighting, a 45-mil TPO roof system, an ESFR fire sprinkler system, 87 (9×10) dock-high doors, four (14×16) grade-level doors, 132 trailer parking stalls and 356 auto parking stalls. CRG’s parent company, Clayco, served as the design-builder on the project, and CRG’s integrated partner, Lamar Johnson Collaborative, was the architect. 

“We continue to have strong conviction on the long-term growth potential of Class A distribution assets,” said Brandon Jenkins, chief operating officer of Fundrise. “The Cubes at Glendale project by CRG is a great example of this profile of asset that is both well-located and can meet the needs of today’s logistics users.” 

Cushman & Wakefield’s Will Strong, Phil Haenel, Micki Strain, Kirk Kuller and Molly Hunt of the firm’s National Industrial Advisory Group – Mountain West team represented CRG in the sale transaction. Additionally, Cushman & Wakefield’s Equity, Debt & Structured Finance (EDSF) team comprising Rob Rubano, Brian Share, Max Schafer and Becca Tse represented Fundrise in the procurement of $58.0 million in acquisition financing.  

“In a rapidly rising interest rate environment, forward sales don’t always pencil, but in the West Valley, tenant demand is still strong and continued rent growth beat pro forma,” said Brian Share, executive managing director for Cushman Wakefield. “We marketed the acquisition financing to lenders as a vacant lease-up, but the property is tracking to lease up and stabilize faster than expected. It’s a testament to the quality of the building and location – a win for all sides.” 

CRG has planned, broken ground on or completed over 53 million square feet of industrial projects, serving tenants such as Amazon, Lowe’s and McKesson. In Phoenix, CRG is also developing The Cubes at Mesa Gateway, a 268-acre master-planned industrial park that will bring up to 4 million square feet to the Southeast Valley. It will be the largest master-planned, development-ready industrial park delivered in Phoenix’s Southeast Valley submarket, which is expected to add over 120,000 residents by 2025.