CBRE Facilitates the $17.5 Million Sale Leaseback of Industrial Portfolio

The portfolio includes two fully leased buildings totaling 106,174 sq. ft.

PHOENIX, (October 17, 2024)—CBRE negotiated the $17.5 million sale-leaseback of the MarLam Industries Manufacturing portfolio, two buildings totaling 106,174 square feet, in Phoenix to a joint venture led by Wentworth Property Company. The buildings sit adjacent at 2425 South 10th Street and 834 East Hammond Lane.

CBRE Investment Properties’ Geoffrey Turbow, Anthony DeLorenzo and Matt Pourcho represented MarLam Industries, in the transaction.

“This portfolio’s location is an investor’s dream in the tightest industrial submarket in the Phoenix metro,” said Turbow, senior vice president at CBRE. “The ability to lease back the building to MarLam Industries provides a seamless transition for their operations, allowing them to free up equity to maximize profits. The creative approach to structuring this deal offers a dual advantage, making it a win-win for investors looking to maximize their returns while ensuring stability and continuity for MarLam. The team at Wentworth are seasoned local professionals, which provided a smooth process and successful closing.”

Located across 5.51 acres in the Phoenix airport submarket, the two standalone manufacturing facilities both offer heavy power and a secure yard. The 2425 South 10th Street building, a 48,504 sq. ft. facility, features 5,403 sq. ft. of office area, 22 clear heights and 11 grade-level doors. The second building at 834 East Hammond Lane offers 47,438 sq. ft. of manufacturing space with 20 clear heights and 11 grade-level doors. This building features a second-floor mezzanine with 4,829 sq. ft. of office area.

MarLam Industries is one of Southwest’s largest manufacturers of laminate and cultured marble tops and tubs and fabricators of Corian and granite kitchen and bath countertops.

Located in one of Phoenix’s most favorable industrial locations, the properties run parallel to Interstate 10 (I-10), offering easy access to essential distribution routes. According to CBRE research, the airport area submarket’s industrial market is one of the tightest, with a 3.9% vacancy rate in 2Q 2024.