PHOENIX – (March 19, 2024) – CBRE negotiated the $6.3 million sale ($246 per sq. ft.) of 25,569-square-foot lab space at 2801 South 35th Street in Phoenix. Nextmune, a global animal pharmaceutical company, fully leases the property.
Geoffrey Turbow of CBRE Investment Properties represented the seller, Lasalle Company LLC and Hannay Investment Properties in the transaction. PR & MC Properties LLC purchased the property in an exchange.
"This was an extremely rare, long-term leased flex industrial space in the heart of metro Phoenix," said Turbow, senior vice president at CBRE. "The flex industrial building offers unmatched connectivity to the Valley's population. The proximity to Arizona State University provides Nextmune access to one of the nation's strongest labor pools."
"The team at CBRE was thorough and professional," said Craig Hannay, president of Hannay Realty Advisors. "They made the process easy and we were very pleased with the results."
The property was recently renovated to include a state-of-the-art FDA-certified laboratory and manufacturing facility with multiple clean rooms and built-in coolers. The two-story building was originally built in 1991, before its renovation last year. The property, situated on 1.9 acres, serves as one of Nextmune's five laboratory facilities around the globe and is their only location in the U.S.
The property features 142 parking spaces, a gated yard, and loading docks with one grade-level door and one truck well. It is located south of Sky Harbor International Airport near six major freeways: Interstate (I-10), U.S. Highway 60, Loop 202 and 101, and I-17.
According to CBRE Research, the airport industrial submarket continues to be one of the tightest industrial markets, boasting a vacancy rate of 3.8% in Q4 2023 and only 276,063 sq. ft. under construction within a nearly 77 million sq. ft submarket.