PHOENIX, AZ – Four Lee & Associates brokers recently negotiated the $4,700,000 all-cash sale of a 75,786 SF industrial warehouse building at Freeport Center, 5520 W. Maricopa St., Phoenix. The price per SF was $62.02.

Lee & Associates Principals Allen Lowe and Steve Farrell negotiated on behalf of the seller, Maricopa-Phoenix (KBP), LLC. Principals Rick Robertson and Scott Smith represented the buyer, Exeter Property Group, Conshohocken, PA.

“We are very pleased to have put a transaction together on this property at well-below replacement cost,” said Robertson. “These types of fully-leased distribution buildings have been very popular with our investors lately.”

Built in 2002, the fully-leased warehouse features 30’ clear height, 12 exterior dock doors, heavy power and a 185’ truck court.

The property is conveniently located just south of I-10 and just east of the under construction Loop 202 (South Mountain Freeway) and is expected to be completed in 2019.

For more information, Robertson can be reached at 602.954.3748; Smith is at 602.954.3768; Farrell should be contacted at 602.954.3746; and Lowe is at 602.954.3747.

PHOENIX, AZ – A leading auto aftermarket company has signed a 10-year + lease for 109,060-square-feet at Canal Crossing Logistics Center at 5670 S. 32nd St. in Phoenix. The project is currently under construction.

Lee & Associates principals Jeff Conrad and Allen Lowe represented the landlord, Conor Commercial Real Estate (a real estate development and investment arm of The McShane Companies) and Globe Corporation in this transaction. Mike Parker and Evan Koplan of CBRE along with Jacob Bobek of Avison Young represented the tenant, LKQ Corporation.

“We are excited to have secured LKQ as the anchor tenant for Canal Crossing Logistics Center. Landing a commitment from LKQ, a Fortune 500 company, before construction had even begun, speaks to the projects’ strategic central location and modern, functional design,” said Conrad.

LKQ Corporation is a leading international provider of replacement systems, components, equipment and parts to repair and accessorize automobiles, trucks and recreational and performance vehicles. The company will occupy 70% of the 155,351-square-foot building.

As developed, Canal Crossing Logistics Center is an industrial building currently scheduled to be delivered in February 2015. Conrad and Lowe are marketing the remaining 46,054-square-feet that remains available. “The Airport submarket has been thirsty for new Class A distribution product to choose from. This deal further substantiates that momentum,” Conrad added.

The building features 30’ clear height, two drive-ins and ESFR sprinklers. The project sits on 10.09 acres and is located just south of Phoenix Sky Harbor International Airport.

To learn more Conrad can be reached at 602.954.3743 and Lowe at 602.954.3747.

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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