Allstate Adds Tempe Logistics Center to Portfolio
TEMPE, ARIZONA – CBRE Global Investors has acquired Tempe Logistics Center, a 175,314-square-foot industrial building located in the Southeast Valley submarket of Phoenix, Arizona, on behalf of Allstate, as part of its investment portfolio. The asset is fully leased to high-quality, investment-grade tenants.
Tempe Logistics Center is centrally located with access to major arteries allowing quick distribution throughout the Phoenix metro area. It also offers easy access to Phoenix Sky Harbor International Airport and is proximate to Arizona State University and the associated amenity base, which helps tenants attract and retain employees.
“The Phoenix industrial market is home to a diverse array of tenants across major sectors including technology, manufacturing, distribution, and research and development,” said Mike Everly, Portfolio Manager, CBRE Global Investors. “Its high standard of living and favorable business climate have always been strong demand drivers, and the Southeast Valley submarket is considered a key in-fill market within the metro area.”
“We’re thrilled to be working with CBRE Global Investors on such a successful project,” said Mike Moran, Managing Director of Real Estate Equity at Allstate. “The strategic location, quality of the asset and its tenants, and the heightened demand for industrial assets all make Tempe Logistics Center a good fit for our investment portfolio.”
Located at 1524 W. 14th Street in Tempe, the property is a “last-mile” warehouse with 18- to 24-foot clear heights, automatic fire suppression, 23 dock loading doors, six grade-level doors, an over-standard parking ratio, and 130-foot truck courts, which allow for greater maneuverability and better accommodation of multiple trucks. Recent tenant improvements include the installation of full air conditioning in the office and warehouse space, a new office and kitchen buildout, and an upgraded power supply.
Cushman & Wakefield’s Phoenix industrial team of Will Strong; Mike Haenel; Andy Markham, SIOR; and Phil Haenel negotiated the transaction on behalf of the seller, LBA Realty.
“This investment opportunity offered both stable cash flow in its long-term leases and value-add upside potential with a below-market rate,” said Will Strong, Capital Markets, Cushman & Wakefield. “With healthy recent absorption levels, rental rates in the Tempe submarket are expected to increase significantly as the overall market continues to grow and fundamentals continue to improve.”