Highest Single Industrial Sale in Tucson history at $150 million
Phoenix and Tucson, Arizona – As first reported on October 13th Equus Capital Partners, Ltd. (“Equus”) has acquired a 74 property, 7.3-million-square-foot industrial portfolio located across the Phoenix and Tucson metropolitan areas in Arizona. More details of this exceptional transaction became available this week.
The portfolio comprises predominantly multi-tenant in-fill shallow bay properties located in established transportation corridors and population centers. The portfolio is approximately 98% leased and consists of 342 buildings in 74 business parks.
Approximately 85% of the portfolio is located across six strategic sub-markets in Phoenix and about 15% of the portfolio is in Tucson; both metropolitan areas are some of the top growth markets in the United States and poised for continued economic expansion.
According to public records, 14 of the industrial parks sold for approximately $150 million in Tucson, the highest industrial sale price in Tucson’s history. Properties include:
- 2015-2165 N Forbes Blvd. for $20 million
- 1870 W Prince Road for $14.5 million
- 1801-1875 S Alvernon Way and 3921-3974 E 29th for $7.9 million
- 4555-4605 S Palo Verde Rd. and 4520 S Coach Dr. for $10.4 million
- 1660-1684 S Research Loop for $9.8 million
- 4650 S Coach Dr for $3.8 million
- 245 S Plumer Ave. for $4.5 million
- 3601 E 4th and 3200-3320 S Dodge for $13.06 million
- 1601-1607 S Pantano and 1603 S Eastside Loop and 1635 S Research Loop for $3.4 million
- 4500 E Speedway for $25.15 million
- 3845-3895 N Business Center Dr. for $7 million
- 3820-3880 S Palo Verde for $12 million
- 2410-2480 W Ruthrauff Rd for $11.5 million
- 4901-5069 E 29th for $6.3 million
The Tucson portfolio was consummated on October 15, 2021 through Equus sponsored value-added funds and a consortium of strategic co-investment partners.
Rob Glaser, Industrial Specialist, with Cushman & Wakefield | PICOR in Tucson assisted Darla Longo with CBRE of Los Angeles representing the seller’s various affiliates of Presson Equity Partners of Phoenix.
The investment aligns with Equus’ strategy of aggregating high quality multi- and single-tenant in-fill properties located in desirable growth corridors across the United States.
“Our focus is to invest in markets with favorable strong supply and demand fundamentals enabling our investment partners to capitalize on continued economic expansion. Robust population and employment growth resulting from the state’s pro-business stance and high quality of life features are strong drivers for continued expansion of the Arizona economy,” commented Robert Butchenhart, Vice President, Head of Western Region.
The diversified portfolio includes a tenant roster that spans twenty-two different industry segments. No single tenant occupies more than 1.5% of the occupied square footage. Capitalizing on economies of scale, the diversified tenant roster and geographic locations provide for tenant expansion and incubation while maintaining a balanced cash flow stream.
The 7.3-million-square-foot portfolio includes industries spanning e-commerce, logistic providers, manufacturing, business-to-business, and business-to-consumer uses with no tenant industry accounting for more than 25% of the revenue.
The strong historical occupancy and short-term nature of the rent roll provide for an immediate value expansion through mark-to-market of rental rates and lease duration expansion. The micro-location of each asset is favorably positioned to capture continued business in-migration across the state of Arizona.
“The Equus platform is well-suited to operate the complexities and high velocity nature of this portfolio. Due to the low single digit market-wide industrial vacancy and growing demand, the portfolio is poised to be the beneficiary of continued out-performance through a thoughtful and strategic focus on intense hands-on asset management. Our strategy emphasizes a flexible and entrepreneurial approach that will enable the growth of attractive in-place cash returns and long-term value enhancement,” said Kyle Turner, Partner and Director of Investments of Equus. “We will continue to source creative and complex real estate transactions on behalf of our investment partners and will look to grow our presence in the industrial sector up and down the risk curve.”
See Real Estate Daily News for prior article.