Phoenix/Gilbert - A venture formed by a division of the McShane Cos in Rosemont, Ill. (Jim McShane, pres.) plans to develop a 155,351-square-foot speculative industrial project in Phoenix on the heels of the company selling a medical facility in Gilbert. The industrial building will be developed by Conor Commercial Real Estate, the successor to McShane Development Co.
The project is targeted for a site located west of the northwest corner of 32nd and Canal streets in Phoenix. Conor Commercial's plans for the spec industrial project follows the company's nearly $30 million sale of a medical property in Gilbert. After building numerous industrial and office projects in the Valley as McShane Development, the company is now operating as Conor Commercial.
The company is building the industrial space within the Canal Crossing Park industrial project. The rear-loaded building, being called Canal Crossing Logistics Center at 5670 S. 32nd Street. The project is being developed by a venture formed by Conor Commercial and Globe Corp. in Scottsdale (George Getz, principal).
Public records show Conor Globe-Canal Crossing LLC paid $1.8 million to buy the 10.1-acre site. The seller was Canal Crossing Phoenix #2 LLC, a company formed by General Development Co in Southfield, Mich. (Bruce Brickman, principal). The buyer in the cash sale was represented by Allen Lowe and Jeff Conrad of Lee & Associates Arizona in Phoenix. Matt McDougall and Stein Koss also of Lee & Associates represented the seller.
Sean Cummings of Conor Commercial in Phoenix says construction is set to start in July, with completion expected early 2015. McShane Construction Co. is to serve as contractor. Butler Design Group in Phoenix is the architect. Atherton Engineering Inc. in Phoenix is the civil engineer. Development cost (land and building) is estimated at just over $12 million. Bank of America is providing construction financing.
Lowe and Conrad have the leasing assignment for the multi-tenant project.
In the Gilbert sale, a company formed by Fairways Equities in Dallas, Tex. (Brant Bryan, David Stringfield, principals) paid $29.5 million ($414 PSF) for the two-story, 71,259-square-foot medical facility located north of the 202 Loop at 3825 S. Val Vista Drive. That project is leased to the United States Veteran’s Admisntration (VA) in a 20-year lease agreement valued at $39 million. The seller was McShane VA Gilbert LLC. Records show Gilbert Healthcare Special LLC (Fairways Equities entity) acquired the property with a $27.838 + million senior loan and a junior loan of $1.7 million. The beneficiary is Wells Fargo Bank, as trustee of the VA CTL Pass-Through Trust.
McShane acquired the 8.867-acre Gilbert site at year-end 2012 after being selected to develop the project by responding to a request for proposal (RFP) issued by the VA. McShane completed the VA Outpatient Clinic build-to-suit in March. The investment is the first in the Valley for the privately-held Fairways Equities, which is an affiliate of Dallas-based Cresa Partners Capital Markets.
Contact Cummings at (602) 515-0884. Mike Olsen of Globe Corp. is at (480) 991-0500. Reach Bryan and Stringfield at (972) 713-4000. The Lee & Associates agents are at (602) 956-7777.
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