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6/11/24
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Founders Properties acquired 21st Street Center, a two-building industrial project totaling 162.2k sf on more than eight acres in the sought-after Airport submarket of Phoenix. Consisting of two highly functional industrial buildings located at 455 and 465 West 21st Street, the property was 100% leased to three tenants at the time of sale.
The property offers many state-of-the-art features fitting modern industrial tenant demand in the area, including its exceptional tenant size flexibility with various storefronts, ample loading and parking, substantial power, and more.
The property is well located at the confluence of I-10, Loop 202, and U.S. Route 60, two major interstates in Phoenix. It is also within minutes of Phoenix Sky Harbor International Airport, one of the busiest airports in the country. Its location also provides connectivity to both greater Phoenix and the Southwest US within a single day’s drive time.
Cushman & Wakefield’s Will Strong, Michael Matchett and Molly Hunt of the firm’s National Industrial Advisory Group – Mountain West represented both seller and buyer in the transaction. Cushman & Wakefield’s Mike Haenel, Andy Markham, Phil Haenel, and Foster Bundy provided leasing advisory and were also retained by the buyer to continue handling the project’s leasing efforts. In addition, a Cushman & Wakefield Equity, Debt & Structured Finance team of Rob Rubano, Brian Share, Max Schafer, and Becca Tse placed the acquisition loan.
“21st Street Center is an outstanding, well-established infill industrial asset with a great location in the Phoenix Airport submarket. The location further benefits from immediate access to multiple key logistical routes spanning the region. Adding to the appeal of its investment profile are its stable tenancy and high occupancy coupled with a staggered expiration schedule allowing for potential continued rent growth,” said Bundy.
According to Cushman & Wakefield research, with approximately 70.7 msf of inventory, the Phoenix Airport submarket reported a healthy industrial vacancy rate of 5.9% in Q1 2024, compared to an overall vacancy of 10.6% for the growing Phoenix market. Notably, although there has been some recent adjusting in the industrial sector, the Phoenix Metro industrial market has reported a stunning 48 consecutive quarters (12 years) of positive net absorption starting in Q2-2012 through Q1-2024 amounting to nearly 130 million square feet of occupancy growth.
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