Cushman & Wakefield Industrial Team Sole Representative on Sale

PHOENIX, Arizona – Cushman & Wakefield completed the sale of Avondale Commerce Center I & II, located at 1050 & 1250 N. Fairway Drive in Avondale, Ariz., for $36.25 million ($61.43 PSF). Phoenix-based Avondale Commerce Center LLC (a company formed by Presson Corp.) purchased the property from 1050-1250 N El Mirage Road-Avondale LLC (a company formed by iStar Inc.) of Dallas.

Paul Boyle, Rick Danis, Gary Anderson and Mike Gilbert of Cushman & Wakefield brokered the deal. The team has worked on the management and leasing/stabilization of the property since the current owner obtained title in 2010 and has represented both the buyer and seller in acquisitions and dispositions for over 25 years.

Comprised of 13 buildings, the 590,136-square-foot (SF), multi-tenant industrial park is situated on 47.71 acres and is currently 60% leased. Developed by RDB Development in 2008, the asset features 18-25 foot clear height, speculative office build-outs, grade level and truck well loading and I-10 frontage.

“The property can accommodate a variety of users with space requirements ranging from 2,463 SF up to 78,790 SF. Attractive features such as detail to architectural aesthetics, high office ceiling clear heights and spacious landscape grounds make Avondale Commerce Center a desirable location for tenants,” said Boyle.

With the recent completion of the Loop 303 and the expansion of the Loop 202, access to the Southwest Valley is projected to grow at a rapid pace. In addition, plans are currently underway for a freeway interchange at Fairway Drive and Interstate 10, scheduled for completion in 2021. This will create immediate access to the property making it a clear destination for users.

At the close of 2017, just under 3 million square feet of space was absorbed in the Southwest Valley and year-to-date in 2018, new housing permits are already up 10% from 2017. “Avondale Commerce Center I & II is well positioned to take advantage of the exciting growth cycle underway in the Southwest Valley,” added Boyle.

Cushman & Wakefield Negotiates Sale of Industrial Park to California Investor

PHOENIX, AZ– Cushman & Wakefield, a global leader in commercial real estate services, announced Wednesday that Roosevelt Business Park, a four-building industrial park at 7150 W. Roosevelt in Phoenix has been sold for $14.9 million ($67 PSF).

Cushman & Wakefield Senior Vice President Gary Anderson, Senior Managing Directors Paul Boyle and Rick Danis, along with Associate Mike Gilbert negotiated the sale transaction. WLA Realty Group of Newport Beach, CA, acquired the park from Pearlman Property Management of Santa Clara, CA. The Cushman & Wakefield team has been retained to handle leasing of the business park.

Roosevelt Business Park is strategically location along Interstate10 just east of 75^th Avenue in the heart of the Southwest Valley Industrial Submarket.

“Roosevelt Business Park was purchased at a significant discount to replacement value said Anderson. “The project has seen consistent rent growth over the last 12 months in a sluggish single family home building environment. These projects typically house a significant amount of companies related to the home building and construction industry. If the home building industry climbs back to a normal level, we expect to see tremendous growth in occupancy as well as rent rates. The lack of like-kind projects planned or under construction in the near vicinity bodes well for Roosevelt Business Park, too.”

Roosevelt Business Park tenants will have far better access to other parts of the valley with the upcoming construction of the Loop 202 Freeway along 59^th Avenue.

“The project has real upside,” according to Mr. Anderson. “Each suite is turn-key ready, and the project has minimal deferred maintenance. The floor plans are flexible for a variety of users. We think the buyer’s timing on this acquisition in the current industrial cycle is ideal.”

Roosevelt Business Park was built in 2006 and contains approximately 223,257-square-feet of multi-tenant industrial space within four buildings. The project is currently 75% leased.

The following leases were reported for the Phoenix Lease Report September 22-26, 2014

OFFICE SPACE – 1700 N DESERT DR., TEMPE
Phoenix, Ariz. – Greenville, NC-based Regional Acceptance Corp. leased a 40,000-square-foot office at Papago Technology Center located at 1700 N. Desert Drive in Tempe, Ariz.

Bryan Taute with CBRE represented the landlord, WDP Partners of Phoenix. The tenant, a division of BB&T Bank, was represented by Jason Moore and Keith Lammersen with JLL.

“This lease is another good example of a new office user to the market being drawn to a centrally located building that allows them to easily attract new employees,” said CBRE’s Taute.

Regional Acceptance Corp. is looking to capitalize on Papago Technology Center’s location in the heart of one of metro Phoenix’s most desired labor pools and plans to hire approximately 300 new employees to staff the center. The company also plans to make significant improvements to the newly-leased space in order to offer future employees a state-of-the-art, modern facility. The company plans to take occupancy of the space in March 2015.

Built in 1993, Papago Technology Center is a 75,000-square-foot flex/office building located in the heart of Tempe and one of metropolitan Phoenix’s largest, most-desired labor pools. The property benefits from direct access to the light rail system via the station at Washington Street and Priest Drive as well as proximity to the Loop-202 via Priest Drive. The property currently has 33,795 square feet of remaining space available for rent.

INDUSTRIAL SPACE – 5502 W BUCKEYE AVE., PHOENIX

Elontec has leased 28,231-square-feet of space, which is an expansion for the company at to 5502 W. Buckeye Avenue in Phoenix. This lease brings the 103,400-square-foot Freeport Industrial Center to 100% occupancy.

Elontec, an award-winning, woman-owned office furniture, relocation and cabling company, will consolidate its operations and relocate its corporate headquarters currently at 5402 W. Roosevelt St., Phoenix. Elontec plans to relocate in October.

The company will be consolidating two spaces that total approximately 24,000-square-feet and moving operations to Freeport Industrial Center. Elontec will be hiring additional workers as part of the expansion.

Cushman & Wakefield negotiate the long term lease. “This space sat vacant for more than 18 months before we were enlisted to market the property,” said Justin LeMaster of Cushman & Wakefield . “Based on our strategic marketing approach and relationships in the brokerage community, we were able to completely negotiate the deal within two weeks of receiving the assignment.”

LeMaster, Mike Gilbert and Paul Sweetland, SIOR, of Cushman & Wakefield’s industrial division represented the landlord, Environmental Development of San Diego. Ted Liles of Cresa represented Elontec.

OFFICE SPACE – SCOTTSDALE EXECUTIVE OFFICE CENTER

Cushman & Wakefield of Arizona, Inc. negotiated 21,085-square-feet of new leases at Scottsdale Executive Office Center, 15880, 15990 and 16100 N. Greenway-Hayden Loop.

Ingram Micro, Inc., a Santa Ana, Calif.-based firm, opened a technology incoming call center and occupies 14,926-square-feet and PHX Architecture relocated from a central Scottsdale location into 6,159-square-feet.

“The Scottsdale Executive Office Center meets the needs of tenants who require dense floor plans with 5.77:1000 ratio parking to go with it,” said Chris Nord, Associate Director with Cushman & Wakefield of Arizona, Inc. “The bay depths allow for efficient floor plans and a 1% load factor keeps the required size of the premises smaller than competing office properties.”

Nord and Michael White of Cushman &Wakefield represented the landlord, Perry Investment Trust No. 1. Mark Seale of Cassidy Turley represented Ingram Micro. Victor Gilgan and Scott Fey of Omni America, LLC represented PHX Architecture.

Both tenants took occupancy this month, bringing the property to 87% occupancy. Other tenants include Trivita, Stella & Dot, MWA Intelligence, and Landmark Education.

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RETAIL – ENCORE PLAZA SHOPPING CENTER, GILBERT
Health Angels, LLC dba TrueRest leased 2,147-square-feet in Encore Plaza Shopping Center recently. The location of the property is at Baseline & Gilbert Road in Gilbert, AZ. Jim Edwards of Rein & Grossoehme Commercial Real Estate represented the landlord and Carl Jones & Gordon Heckaman of DeRito Partners represented the tenant.

RETAIL – 1066 N POWER RD, MESA
Mesa Comics leased 1,500-square-feet at 1066 N. Power Road Mesa, AZ recently. The landlord is 1066 North Power, LLC. Jake Ertle and Jim Edwards, both of Rein & Grossoehme Commercial Real Estate represented the tenant and landlord.

RETAIL – THE PALMS SHOPPING CENTER, PHOENIX
99 Cent Plus leased 900-square-feet in The Palms Shopping Center recently. The location of the property is 15620 N. 35^th Ave. in Phoenix, AZ. Richard Mackay of Rein & Grossoehme Commercial Real Estate represented the landlord and tenant.