PHOENIX, ARIZONA — CBRE announced that Bay Logistics, a distribution and logistics company, leased 76,189-square-feet at Central Logistics Cold Storage Center in Phoenix amid growing demand for high-quality commercial freezer space.

CBRE’s Cooper Fratt and John Werstler represented the landlord, ViaWest Group. Michael Waxman, Aaron Norwood and Foster Bundy with LevRose Commercial Real Estate represented the tenant.

“This state-of-the art freezer facility received a lot of interest,” Fratt said. “This project was a true collaboration between ViaWest, the architect and CBRE in order to turn this empty, outdated cold storage building into a modern facility that serves the increasing demands of today.”

The property, located at 291 E. Buckeye Road, was renovated to feature a separate and divisible north and south building. Each section boasts an Alta Refrigeration System, which allows for multiple temperature ranges, and remote monitoring and alarm. The property, which has immediate access to downtown Phoenix, doesn’t have any remaining cold storage space available.

“From the beginning design stages, ViaWest left no stone unturned in converting a non-operable cold storage building into a modern facility that filled a large void in a market with a huge lack of cold storage options for today’s tenant base,” Werstler said.

The growth of online grocery sales has pushed demand for cold-storage warehouses, according to CBRE research.

“Food innovation is a rapidly-growing sector in Phoenix,” said Christine Mackay, Phoenix Community and Economic Development Director. “Consumer demand requires innovative and technologically advanced facilities to quickly get product to market. Phoenix’s transportation infrastructure and long-established logistics and warehousing sectors make this a prime location for companies like Bay Logistics.”

The COVID-19 pandemic, which created a massive disruption in the food industry, has also been buoying ongoing demand for industrial cold storage space in the U.S., according to a CBRE report. The pandemic accelerated the need for this type of space as e-commerce grocery has been adopted more widely and as restaurants have turned to offer more delivery and take-out options that require cold storage capacity, among other reasons.

“There are several drivers of the cold storage market today, one of the primary one being the shift in consumer demand, especially among Millennials,” Fratt said. “Consumer demand for fresher, healthier and organic food options with rapid delivery solutions will undoubtedly continue to grow and with it the demand for cold storage facilities.”

TUCSON, ARIZONA — The Tucson land market continues to build on a record-setting year in Q4. The lack of ready-to-develop lot supply is driving larger deals in both volume and size. This is clearly on display by the current housing market, where demand for new homes continues to dramatically exceed the production supply. The Tucson region’s SFR and multi-family permits continue to rise along with record median new home prices and overall rents.

Land Advisors Organization-Tucson started Q4 off with the sale of over 1,000 lots throughout the Tucson metro area. Among this total, a few noteworthy closings include:

• In north Marana, AMH Development, LLC purchased 435 lots in Remington Ranch from Tucson Farms, LLC.
• In Vail, Forestar (USA) Real Estate Group Inc purchased 135 acres in the Rocking K Master-Planned Community from Rocking K Development Co.
• In north Marana, Richmond American Homes purchased 119 additional lots within the Gladden Farms Master-Planned Community, from Gladden Phase II, LLC.

As entitled land with available utilities becomes more difficult to find and community counts continue to fall, Tucson homebuilders appear to be aggressively seeking out larger positions in specific growth areas to give them room to grow for years to come. This is particularly significant within the region’s Master-Planned Communities.

White commented, “There is unanimous agreement that the Tucson market is severely undersupplied and that consumer demand for housing will continue to outpace supply here. The region is experiencing rapid population growth and a growing employment base that will continue to drive demand for the foreseeable future. We are seeing the robust demand for lots in Q4 as a sign that builders anticipate the market to stay strong for at least the next 24 months.”

Will White and John Carroll of Land Advisors Organization-Tucson can be reached at 520-514-7454

PHOTO: Will White, Land Advisors Organization Tucson.

JLL Capital Markets completed the sale of Central Self-Storage in a thriving submarket in Chandler

PHOENIX, ARIZONA – JLL Capital Markets announced that it has closed the $12.3 million sale of Central Self-Storage, a 573-unit self-storage facility in the Phoenix-area community of Chandler, Arizona.

JLL marketed the property on behalf of the seller, Pegasus Group. Invesco Real Estate, a global real estate investment manager, acquired the asset in partnership with Baranof Holdings.

Central Self-Storage comprises six single-story buildings and one covered parking structure that houses 106 climate-controlled and 457 non-climate-controlled units along with 10 parking stalls. Constructed in 1996, the property features secure fencing, electronic access control and 24-hour surveillance, in addition to two offices.

Located at 641 East Warner Rd., Central Self-Storage has more than 450 feet of frontage along the south side of East Warner Road, which is a heavily travelled east-wear thoroughfare with a traffic volume of over 30,000 vehicles per day. The property is in Chandler, which is a thriving Phoenix suburb, and within the 101 Corridor, which is a growing area for technology. More than 32 percent of households within a three-mile radius are renter-occupied.

The JLL Capital Markets team representing the seller was led by Managing Directors Steve Mellon and Brian Somoza, along with Director Carl Beardsley.

“Central Self-Storage is positioned for revenue growth through rate increases to in-place tenants and continued market-rate optimization,” Somoza said.

“Metro Phoenix is experiencing booming population growth, driven primarily by corporate expansion, access to an educated and talented workforce and a high quality of life,” Mellon added.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.