SM202 Commerce Park to Feature 700,000 SF of Class A Spec Industrial Space

Phoenix, AZ– Trammell Crow Company (TCC) announced plans for a new Class A speculative commerce park in Metro Phoenix. The project will sit on 48 acres and be comprised of one to three buildings totaling approximately 700,000 square feet. The site is located on the Gila River Indian Community (GRIC), at the southwest corner of Loop 202 and 40^th Street and positioned along the new South Mountain Loop 202 Freeway currently under construction with completion slated for by the end of the year. Construction of TCC’s commerce park is scheduled to commence in December 2019 and be complete September 2020.

“The South Mountain Loop 202 submarket is a newly emerging submarket given the 22- mile expansion of the Loop 202 Freeway, but already boasts tenants from a breadth of industries,” said Cathy Thuringer, a Principal with TCC’s Phoenix office. “This new access to and from the Southwest Phoenix and Southeast Valley submarkets will change the dynamic of travel for tenants and visitors to the area and provide excellent opportunities for product type optionality. This location benefit, along with the fact that supply and demand are in strong balance, signal to us that this new commerce park will be well received.”

The 48-acre park will front along the Loop 202 Freeway and the full diamond interchange at 40^th Street is the first interchange west of Interstate 10. TCC will consider build-to-suit opportunities on all or a portion of the site which can accommodate buildings from 180,000 to 700,000 square feet in cross dock or rear load building configurations.  Depending upon the configuration, buildings will feature a combination of ramp-up and dock-high loading with clear heights ranging from 28’ to 36.’

“TCC is very excited about the opportunity to be the first development on the Gila River Indian Community after opening of the South Mountain Loop 202 Freeway,” said Joe Ihrke, a senior vice president with TCC’s Phoenix office responsible for overseeing the development of the project. “We are working hand in hand with GRIC representatives and are collectively eager to deliver a project that will be attractive to occupiers that bring quality jobs to the community and be a catalyst for further development along this strategic new corridor within Metropolitan Phoenix.”

Butler Design Group will serve as the project architect. First Vice Presidents Cooper Fratt and Mike Parker along with Senior Vice President John Werstler with CBRE will be responsible for the leasing and marketing of the project. “Industrial product in the South I-10 corridor is well-leased but dated—the average building age is 25 years old,” said CBRE’s Fratt. “The introduction of new inventory with this commerce park will meet future tenant demand for Class A space, a segment that has been largely unmet in this well-located section along Loop 202 Freeway.”

TUCSON, ARIZONA — Tucson’s Mayor and Council have approved a rezoning request from Lee St. LLC for 2.38 acres of residential property on Tucson’s far east side. The property, a beautiful piece of land at 8211 E Lee Street, has now been approved for rezoning from RX-1 to R-1.

The rezoning was approved in response to a request from property owners Carly Caylor and Chuck Cushman whose plan for the property includes just 12 single-family homes in a small enclave that “will fit beautifully with the wonderful existing ambience of the surrounding neighborhood.”

According to Caylor and Cushman, Lee St, LLC, looks forward to breaking ground on the project within the next 60 days.

JLL completes $17.75M transaction between two Wisconsin-based healthcare RE firms

PHOENIX, Arizona – Bolstered by a booming medical office market, strong demographics and an institutional-quality asset, two Wisconsin-based real estate firms have traded hands on a Gilbert, Arizona medical office building called Spectrum Medical Commons. The $17.75 million deal represents a substantial $409.41 per-square-foot.

JLL Executive Vice President Brian Ackerman facilitated the transaction. Hammes Partners, a private equity platform focused exclusively on the U.S. healthcare real estate market, purchased the asset from Irgens, a commercial real estate development firm.

“As an expert in the healthcare real estate sector, Hammes recognized the advantages that make Spectrum Medical Commons an attractive investment,” said Ackerman. “The building has stable tenancy anchored by multiple long-term leases, in a location with strong demographics, adjacency to a major hospital and medical submarket and nearby amenities.”

Located at 3367 S. Mercy Road, Spectrum Medical Commons totals 43,355 square feet of Class A medical office space situated adjacent to Mercy Gilbert Medical Center and multiple nearby medical office parks. The building features a modern surgery center with prominent building signage and near-immediate access to a full interchange at Val Vista Drive and the Loop 202 freeway. It is minutes from San Tan Village Mall, Main Street Commons and other major shopping and retail centers.

According to JLL, demand for metro Phoenix medical office space has driven vacancy rates down by 33 percent since 2010. And while the Southeast Valley – including Gilbert – is experiencing the greatest amount of new medical office construction, currently at more than 300,000 square feet, it is also among the most attractive for rental rates and in high demand from a growing population.

“We see that demand only continuing to rise,” said Ackerman, “which bodes well for the future of this new asset.”