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2/12/21
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ViaWest Group has obtained a $40.2 mil loan for the acquisition and redevelopment of two office assets into three industrial buildings totaling approximately 450k sf in a high barriers-to-entry submarket in Tempe, AZ. The financing was arranged by JLL Capital Markets.
The two assets, located at 6820 S. Harl Ave and 910 W. Carver Rd, span a total of 26 acres in the dense, infill Tempe Southwest Industrial submarket, which has seen a recent surge of demand with little new supply expected to enter the market. Since 2012, vacancy in the submarket has dropped from around 12.2 to 4.7%. Over the same time period, overall industrial rents in the submarket have grown by an average 4.3 percent CAGR.
The location provides easy access throughout the Phoenix MSA via proximity to Interstate 10. Additionally, the properties are 15 minutes from Phoenix Sky Harbor International Airport and 20 minutes from downtown Phoenix.
ViaWest plans to demolish the existing 103k sf building on S. Harl Ave and replace it with two new Class A industrial buildings with 32-foot clear heights totaling approximately 350k sf. The W. Carver asset is a former industrial-to-office conversion and will be repurposed back to its original use as an air-conditioned, 100k sf industrial building with 32-foot clear height. Construction is expected to commence in January 2022.
JLL’s Brandon Roth, Jason Carlos and Charles Halladay arranged the four-year, floating-rate loan with PCCP LLC. The financing includes initial funding for the acquisition and future funding for the redevelopment and construction of the project.
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