Lincoln Property Buys Land for Major Loop 303 Arizona Spec Industrial Project

Park303 to deliver almost 1.2 million s.f. of Class A space along new freeway corridor

GLENDALE, Arizona – NAIOP Arizona 2018 Owner and Developer of the Year Lincoln Property Company has closed on 71.5 acres in Glendale, Arizona for $11.7 million, initiating development of Park303. The new $115 million speculative Class A industrial project will have the flexibility to include two buildings totaling 705,531-square-feet and 488,995-square-feet, or combine into one single building totaling almost 1.26 million-square-feet.

Park303 is located between Bethany Home Road and Glendale Avenue, with one-quarter mile of freeway exposure along the new Loop 303 and featuring 40’ clear height and more than 540 parking spaces.

“The Park303 development is the newest in a string of projects to emerge along Glendale’s recently annexed 303 corridor,” said City of Glendale Mayor Jerry Weiers. “We are excited to welcome Lincoln Property and this state-of-the-art facility with modern amenities, and know it will continue to increase the momentum created by Red Bull, Ball and Rauch. The project is one of many developments in the area which will positively impact our residents and our economy.”

“We’ve designed Park303 with the flexibility to serve multiple users or combine into a single-building, single-user campus supporting one major employer looking for more than 1 million square feet of space,” said Lincoln Property Company Vice President of Development Doug Klocke. “That meets the space, amenities and parking demands that we’ve seen from today’s very modern industrial tenants, including those in the rapidly-growing e-commerce market.”

In August, LPC sold Lincoln Logistics 40 – a project the company completed in Goodyear in late 2018 with similarly modern amenities – to Nike Inc. The transaction ranks as the year’s highest-priced and largest-sized industrial sale. Nike will use the building for its third U.S. manufacturing facility, where it will employ more than 500 and build soles for Nike Air sneakers.

Park303 will have many common amenities to Lincoln Logistics 40, including 40’ clear height, efficient LED lighting, clerestory class for abundant natural light, ample truck parking and a fully amenitized outdoor space with covered canopies, seating and barbeques. The project will also provide freeway-fronting signage along the Loop 303 and provide employees and visitors easy ingress and egress to the project via two full-diamond freeway interchanges at Bethany Home Road and Glendale Avenue.

Park303 is bounded by the Loop 303, Bethany Home Road, Glendale Avenue and Sarival Road, adjacent to Luke Air Force Base. It sits within the rapidly developing Loop 303 corridor, in an area identified by the City of Glendale as the “New Frontier District” and targeted for economic development. Corporate neighbors to Park303 include Boeing, Mercedes, Microsoft, Red Bull, REI, SubZero and UPS, as well as hundreds of new residential homes.

Park303 will break ground in January 2020 and complete in the third quarter of the same year.

Barry Glabman of Scottsdale Investment Management represented the land seller, Roth Development Corp. Butler Design Group is the project architect. Hunter Engineering is the civil engineer. Selection of the project’s general contractor is underway.

To discuss development, leasing, project management or property management opportunities with Lincoln Property Company in the Desert West region, please call David Krumwiede or John Orsak at (602) 912-8888.



Tucson rents increased in September

Tucson rents have remained flat over the past month, however, they are up slightly by 1.8% year-over-year. Currently, median rents in Tucson stand at $712 for a one-bedroom apartment and $946 for a two-bedroom. Tucson’s year-over-year rent growth lags the state average of 3.5%, but exceeds the national average of 1.4%.

Rents rising across cities in Arizona

Throughout the past year, rent increases have been occurring not just in the city of Tucson, but across the entire state. Of the largest 10 cities that we have data for in Arizona, all of them have seen prices rise. The state as a whole logged rent growth of 3.5% over the past year. Here’s a look at how rents compare across some of the largest cities in the state.

  • Looking throughout the state, Gilbert is the most expensive of all Arizona’s major cities, with a median two-bedroom rent of $1,477; of the 10 largest Arizona cities that we have data for, all have seen rents rise year-over-year, with Tempe experiencing the fastest growth (+6.2%).
  • Chandler, Mesa, and Gilbert have all experienced year-over-year growth above the state average (5.9%, 4.4%, and 4.0%, respectively).

Tucson rents more affordable than many similar cities nationwide

As rents have increased slightly in Tucson, a few comparable cities nationwide have also seen rents grow modestly. Tucson is still more affordable than most other large cities across the country.

  • Tucson’s median two-bedroom rent of $946 is below the national average of $1,189. Nationwide, rents have grown by 1.4% over the past year compared to the 1.8% rise in Tucson.
  • While Tucson’s rents rose slightly over the past year, many cities nationwide also saw increases, including Dallas (+1.8%), Atlanta (+1.6%), and New York (+1.5%).
  • Renters will find more reasonable prices in Tucson than most similar cities. For example, San Francisco has a median 2BR rent of $3,131, which is more than three times the price in Tucson.

For more information check out our national report. You can also access our full data for cities and counties across the U.S. at this link.

 



New Multifamily Development Coming to Roosevelt Row Arts District

Facebook Photo: Roosevelt Row Arts District

PHOENIX, Arizona – Cushman & Wakefield announced that an entity formed by Phoenix-based Alliance Residential purchased 1.527 acres within the Roosevelt Row Arts District at the northeast corner of 3rd Street and Portland Street in Phoenix for $6.45 million ($97 PSF).

David Fogler and Steven Nicoluzakis of Cushman & Wakefield represented the seller, Edgehill Investments (Ryan & Anthony Francisco, Principals), in the transaction.

“This site will allow Alliance Residential to expand on their previous experience and success in this high demand location in the heart of the downtown Phoenix Roosevelt Row Arts District,” said Nicoluzakis.

The property, to be named Broadstone Portland, is adjacent to the recently completed 316-unit Broadstone Roosevelt Row. The planned 161-unit property will feature studio, one- and two-bedroom units ranging from 620-square-feet to 1,600-square-feet. The five-story Broadstone Portland will also include street level stoop entrances on top of two levels of podium parking and an elevated amenity deck with a resort-style pool and a fitness facility. Construction is slated to start in the fourth quarter of 2019 and ORB Architects is designing the newly-planned rentals.