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6/30/25
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Desert Cove Industrial Center, a newly constructed, 168k sf Class A industrial property in Surprise, AZ was acquired by an affiliate of Cohen Asset Management Inc for $36.28 mil ($216/sf). The property is located at 11301 North Litchfield Rd.
Delivered in June 2024 by Evergreen Development, the freestanding single-tenant building sits on 9.3 acres and is 100% leased to BP Lubricants USA Inc, d.b.a. Castrol Oil. It offers state-of-the-art features tailored to meet the evolving needs of tenants. These include optimal loading capabilities, multiple access points, functional column spacing, ample parking for trailer and auto, and substantial power supply.
Will Strong, Molly Hunt, Michael Matchett, Jack Stamets, and Madeline Warren of Cushman & Wakefield’s National Industrial Advisory Group—Mountain West represented the seller in the transaction. Additionally, a Cushman & Wakefield Equity, Debt & Structured Finance (“EDSF”) team including Brian Share and Garrett Stasand advised on the acquisition financing. John Werstler, Cooper Fratt, and Tanner Ferrandi of CBRE provided market leasing advisory.
“Desert Cove Industrial Center is a fully leased, income-generating asset positioned in the heart of Phoenix’s West Valley—one of the most sought-after industrial markets in the nation,” said Hunt. “Its location near TSMC and access to a deep, skilled labor pool, combined with strong rent growth and long-term market fundamentals, made this a highly desirable asset for the buyer.”
“This project is strategically located in Surprise—one of the fastest-growing cities in the West Valley,” said Strong. “Its outstanding connectivity to major logistics corridors, including Sky Harbor Airport and the Ports of Los Angeles and Long Beach, enhances its appeal as a distribution hub. The combination of a high-growth location and the credit strength of BP as the tenant made this a very liquid asset in today’s market.”
The Southwest Valley submarket continues to experience accelerated demand for industrial space, driven by the growth of e-commerce, logistics, and manufacturing industries. According to Cushman & Wakefield latest market report, the Southwest Valley reported 1.9 msf of leasing activity coupled with 930k sf of positive net absorption in Q1 2025, leading all Phoenix Metro submarkets in both categories to begin the year. The quarter’s performance carried over the strong momentum from 2024, when the Southwest Valley recorded more than 12.8 msf of occupancy growth—accounting for 58% of Phoenix’s total annual industrial expansion and outpacing all other regional submarkets by a wide margin.
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