GTIS Partners has formed a joint venture with Baker Development Corp. and Foundation Capital Partners to build Yuma 143, a logistics center located within a Qualified Opportunity Zone in Goodyear.
The Yuma 143 development marks GTIS’ 13th investment in the Phoenix area over the past decade. The $45 million project will comprise 490,000 square feet.
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“The project’s location on the west side of Phoenix and strategically located adjacent to the Goodyear cargo airport enables us to serve both the fast-growing Phoenix MSA from a consumer/E-commerce perspective as well as distribute as far west as the LA metropolitan market,” Josh Pristaw, senior managing director, head of Capital Markets & co-head of Brazil for GTIS Partners, told Commercial Property Executive.
GTIS has committed more than $400 million in equity to 12 projects located within Opportunity Zones. The developments include 1.6 million square feet of office and industrial space, as well as 5,300 multifamily units. These investments are located in Phoenix, Tampa. Fla.; and Charlotte, N.C.
Located nearby is Baker Development Corp.’s VB 143 project, part of its next phase at Airport Gateway at Goodyear.
No Signs of Slowing Down
The Phoenix market continues to be a top contender when it comes to industrial development. Last month, a report by CBRE named the metro as the top growth market for big-box industrial, with a 2020 inventory absorption of 9.1 percent.
Major companies are flocking to the area to bulk up operations across the U.S. Last week, ElectraMeccanica, the company known for creating the SOLO single-passenger, three-wheeled electric vehicle, chose Mesa as the home for its next assembly and engineering plant. The company broke ground on the 235,000-square-foot facility that is set to create up to 500 jobs once completed.
Earlier in the month, meal kit company HelloFresh chose to expand its footprint by opening up a distribution center in Phoenix, which will become the company’s largest shipping and fulfillment center in the U.S.
Back in March, Intel announced its decision to increase the company’s semiconductor manufacturing capacity, unveiling plans for two new factories at the Ocotillo campus in Chandler, Ariz. The build-out represents an investment of $20 billion.