Phoenix, Arizona – CBRE announced the sale of 91st Avenue Distribution Center, an industrial property in Tolleson, Ariz. to Nearon Enterprises, LLC for $35 million ($84 PSF).
Darla Longo, Rebecca Perlmutter, Barbara Perrier, Brett Hartzell, Joe Cesta, Eric Cox, Danny Calihan, Pat Feeney and Rusty Kennedy of CBRE represented the sellers, CT Realty and Artemis Real Estate Partners, in the transaction. Bruce Francis, Shaun Moothart, Bob Ybarra, Dana Summers, Doug Birrell and Jennifer Ansari of CBRE’s debt and structured finance team arranged the $19.35 million acquisition loan on behalf of the buyer.
Located at 670 S. 91st Avenue, the 417,600 square-foot property was originally constructed in 2009 on a 21.83-acre lot. The freestanding, Class A warehouse and distribution building features 32’ clear height as well as both dock-high and grade level roll-up doors. 91st Avenue Distribution Center was leased at the time of sale to Gladiator Worldwide Logistics.
The property sits in a strategic last-mile location, providing immediate access to I-10 and Loop 202 freeways. 91st Avenue Logistics Hub is approximately 11 miles west of Downtown Phoenix.
"Although the asset was partially leased at the time of acquisition, pricing and terms were in line with where this would execute if stabilized,” said Moothart. “It’s a great example of the lender appetite for quality sponsorship and the solid fundamentals of the Phoenix industrial market.”
The buyer, Nearon, was founded in 1945 and has a 75-year history of successfully investing in commercial real estate throughout the Western U.S. Today, Nearon owns and operates a diverse portfolio of approximately 5 million square feet, including approximately 3.7 million square feet of industrial properties. The current Nearon portfolio is primarily concentrated in California, Arizona, Utah, and Colorado.
“The demand for quality distribution space from investors, lenders, and occupiers is a testament to the strong fundamentals of logistics real estate overall, and in Phoenix specifically,” said Nearon Senior Vice President, Nick Rini. “We’re seeing rapid leasing velocity in the market, and the debt capital markets exceeded our expectations of what was attainable. We secured the attractive debt terms by leveraging the desirability of the asset with the outstanding execution of the CBRE Debt & Structured Finance team.”
The Phoenix industrial market’s momentum continued into the first quarter of 2021 with 5.6 million square feet of positive net absorption, its 44th consecutive quarter of gains, according to CBRE research. Strong leasing activity throughout the Valley, newly completed buildings, several pre-leased projects and build-to-suit completions drove net absorption. Leasing activity in the Valley is already on track for another record-breaking year.