Last mile facility garners a notable $16.20M

PHOENIX, Arizona – Demand for last-mile facilities has garnered the Phoenix office of JLL a $16.20 million sale price ($127 price-per-square-foot) for a Tempe, Arizona infill industrial building that is fully leased by the world’s largest express transportation company.

JLL Senior Vice Presidents Tivon Moffitt and Peter Bauman, and Executive Vice President Steve Larsen, represented the building seller, MRM Tempe LLC. The buyer was an out-of-state partnership involved in a 1031 exchange.

Located at 8210 S. Hardy Dr. – less than one mile east of Interstate 10 – the 128,000-square-foot building was constructed in the late 1990s as a built-to-suit project. It has remained 100 percent occupied by the same company since delivery.

“Strategic importance as a last-mile facility, combined with recent building improvements, historical occupancy and a prime infill location were all significant drivers for the economics of this transaction,” said Moffitt.

“Last mile facilities remain in high demand,” added Bauman. “We continue to see cap rate compression for functional real estate, strong credit and long-term leases.”

According to JLL, strong and steady absorption has dropped the Valley’s industrial vacancy rate to a 10-year low of 6.7 percent. The Southeast Valley led that absorption during the second quarter as demand continues to rise for supply chain and e-commerce facilities.

“Data supports what we see on the ground, which is that the overall Phoenix industrial market continues to see strong absorption and rapid rent growth,” said Larsen. “That is especially true for in-demand markets like the Southeast Valley and infill locations like this Tempe facility.”

Phoenix, Arizona– CBRE has brokered the sale of the 54,065-square-foot, grocery-anchored Ahwatukee Mercado shopping center in Phoenix’s Ahwatukee Foothills Village district. Los Angeles-based Westwood Financial, LLC acquired the property from TPP 202 Ahwatukee, LLC c/o TriGate Capital, LLC of Dallas for $9 million.

Jesse Goldsmith, Steve Julius and Chase Dorsett of CBRE in Phoenix and Philip Voorhees, John Eddy and Jimmy Slusher of CBRE in Newport Beach, California represented the buyer and the seller in the transaction. The transaction marks Westwood Financial’s first purchase in Phoenix since Mark Bratt was appointed CEO.

Ahwatukee Mercado is shadow-anchored by Safeway and is 64 percent leased to nationally-recognized and local food and beverage, lifestyle and service-based retailers, including H&R Block, Cactus Jack’s Bar & Grill, Great Clips and Subway.

“Ahwatukee Mercado comprises a diverse and dynamic mix of internet-resistant retailers that generate consistent daily-trip traffic to the center,” said CBRE’s Goldsmith. “This, coupled with strong area demographics and the tremendous value that can be created through the lease up of the vacant space, drove significant interest to the property as our team received multiple offers in a short time frame.”

Located at the southwest corner of Elliot Road and S. 48^th Street at 4623 & 4747 E. Elliot Road, the property benefits from strong household incomes in the immediate submarket, three points of access and proximity to residential and commercial density. There are more than 254,000 people in a five-mile radius with an average household income nearing $89,000.

Steady population growth supports consumer spending, which will attract retailers and boost demand for space through the end of the year, according to CBRE Research.

MARICOPA, Ariz., – Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, has announced the sale of Edison Place, a multi-tenant retail property located in Maricopa, Arizona. According to Ryan Sarbinoff, regional manager of the firm’s Phoenix office, the asset sold for $4,578,000 ($511 PSF).

The buyer, a limited liability company, was secured and represented by Scott Ruble, Jamie Medress, Mark Ruble and Chris Lind, investment specialists in Marcus & Millichap’s Phoenix office. Edison Place is located at 44565 West Edison Road in Maricopa, Arizona. The 8,958-square-foot property was built in 2019 and sits on 1.04 acres. The two medical tenants, SimonMed Imaging and Heartland Dental are on a brand-new 10-year triple-net lease. Over the past 15 years, households in the area have grown over 33,000, ensuring growth in the area and consistent traffic to the property.