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2/05/25
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A joint venture consisting of Creation RE + PE, CrossHarbor Capital Partners, and Amherst recently closed on the acquisition of a 16-acre office-to-industrial conversion redevelopment site in Tempe, AZ. The trade had a price of $13.5 mil.
The buyer plans to develop a brand-new, Class A shallow-bay industrial campus totaling 273.3k sf across three buildings. The new project has been named Nexus Commerce Center and is scheduled to commence construction in February.
The seller was Amherst, who will retain a co-general partner interest after previously serving as the lender on the occupied office building and who foreclosed on the asset when the tenant vacated.
The site currently contains a vacant 223.4k sf back-office/call center building that the joint venture buyer will be demolishing to pave way for its Nexus Commerce Center development. Located at the southeast corner of South Hardy Dri and West Elliott Rd, the property is in a highly desirable infill location in one of the most dynamic submarkets in the entire Phoenix MSA with proximity to Phoenix Sky Harbor International Airport.
The new Nexus Commerce Center will comprise three buildings of 103.3k sf (Building A), 81.3k sf (Building B) and 88,.8k sf (Building C). The project features 32’ clear heights, ample dock and grade loading, trailer and truck parking, and high-quality office space. There are seven major freeways/expressways located within ten minutes of the property, with the Sky Harbor International Airport, one of the busiest airports in the US, within just a five-minute drive.
Cushman & Wakefield’s Mike Haenel and Chris Walker in collaboration with Will Strong of the firm’s National Industrial Advisory Group represented the buyer and the seller in the transaction. The firm’s Jeff Wentworth, Andy Markham, Phil Haenel, and Mike Beall also provided local advisory. Mike Haenel, Andy Markham and Phil Haenel were retained by the joint venture buyer to lead leasing efforts for Nexus Commerce Center.
Additionally, a Cushman & Wakefield Equity, Debt & Structured Finance (“EDSF”) team of Rob Rubano, Brian Share, Max Schafer, Billy Coyle, and Niki Kretschmann arranged $39 mil in construction financing on behalf of the buyer. The loan was provided by Bank of America.
“The debt markets are thawing and we’re seeing meaningful improvement in the number of lenders quoting construction loans at higher leverage and lower spreads, but not all projects are created equal. Lenders recognized that Nexus benefits from its strong infill location, premier sponsorship, high quality design, and solid metrics,” said Brian Share, who led the construction financing process.
According to Cushman & Wakefield’s latest Q4 2024 market report, Southeast Valley achieved more than 4.2 msf of industrial occupancy growth in 2024, one of the highest figures in the Phoenix market. The submarket also had one of the highest average asking rates at year-end at $1.33 per square foot NNN per month.
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