10 Buildings in City’s Original Industrial Core Prove Marketability for Class B & C Product
Phoenix, Arizona - A 10-building portfolio of Phoenix properties located in the city’s original industrial core has been sold for $18 million, $50 per square foot. The Class B and C properties were 96 percent leased at the time of sale, demonstrating the marketability of older industrial properties in Greater Phoenix.
Harrison Properties of Phoenix purchased the portfolio from Hibernia Capital Advisors, LLC, a private real estate investment company. Don MacWilliam and Payson MacWilliam of Colliers International in Arizona negotiated the transaction.
“This portfolio had been under contract with another buyer at the time COVID-19 hit the United States,” says Don MacWilliam. “That buyer stepped out of the deal and Harrison Properties was quick to pick up this opportunity. Jim Harrison is an expert in this type of industrial property and understands the value of these assets. He was able to quickly put together a purchase plan and closed the deal in 30 days.”
The 10 buildings included in the portfolio total approximately 357,921 square feet of industrial space. The industrial warehouse properties are located at the confluence of Interstate 10 and Interstate 17, which stands as one of Greater Phoenix’ original industrial cores. The properties range in size from approximately 17,000 to 77,000 square feet, each featuring a multi-tenant design. Several of the properties are occupied by single tenants and the portfolio included 22 tenants at the time of sale. The largest tenants occupying the buildings include Strictly from Scratch, Mega Metals, and Pierpont Manufacturing.
“These buildings provide a unique opportunity to hold infill assets within just a few miles of downtown Phoenix,” says MacWilliam. “The stable cash flow brought by high occupancy, combined with the multi-tenant building configurations, will enable Harrison Properties to add value as rents increase in this strong location.”
The seller had invested approximately $3.7 million in modernizing the buildings, including upgrades to lighting, cooling systems, roof replacements, ADA compliance renovations and parking lot improvements.
Buildings included in the portfolio include:
- 1707-1735 W. Roosevelt St.;
- 902-922 N. 17th Ave.;
- 800 N. 17th Ave.;
- 1728 W. McKinley St.;
- 1010 N. 22nd Ave.;
- 1333-1345 N. 22nd Ave.;
- 1837-1843 N. 23rd Ave.;
- 2102-2112 N. 23rd Ave.;
- 2202-2210 N. 23rd Ave.;and
- 2212 N. 23rd Ave.
These properties are located within the boundaries of Encanto Boulevard to the north, Van Buren Street to the south, Interstate 17 to the west and 16th Avenue to the east.