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Sale Transactions:
Jay Mininberg and Thomas Bean, CCIM, negotiated the sale of a 4,644 SF office building for $1.335 million, representing the seller Cyberitas Enterprises, LLC. The property is located at 4736 N. 12^th St., Phoenix, AZ. The buyer, Abrio Investment Group, LLC, was represented by Carson Eilers with Original Realty Co.

Drew Eisen and Isy Sonabend negotiated the sale of a 6,000 SF industrial building for $695,000 representing the buyer, Fire Dragon Holdings, LLC. The property is located at 9205 N. 10^th Ave., Phoenix, AZ. The seller, RAB Holdings, LLC, was represented by Blake Mallery, Jason Butler and Beth Jo Zietzer with ROI Properties.

Lease Transactions:

Matt Harper, CCIM,  represented the tenant, Discount Depot 3, LLC in a 61-month industrial lease for 20,352 SF at 405 N. 75^th Ave., Phoenix, AZ. The landlord, CI PHX I-GW, LLC, was represented by Phil Haenel, Mike Haenel and Brandon Borsheim with Cushman & Wakefield.

Laurel Lewis represented the tenant, Arrive Logistics, in a 40-month office lease for 15,148 SF at 4940 S. Wendler Drive, Tempe, AZ. The landlord, Orsett/Baseline, LLC, was represented by Spencer Nast with CBRE.

Mark Wilcke and Larson Wilcke represented the tenant, Boston Barricade Company Inc., in a 62-month industrial lease for 7,098 SF at 2452 W. Birchwood Ave., Mesa, AZ. The landlord, BKM Broadwood 251, LLC, was represent by Golden St. John with Vantage Commercial.

Joe Pequeno and Troy Giammarco represented the tenant, Place of Hope Treatment Center, LLC, in a 39-month office lease for 4,064 SF at 3150 N. 24^th St., Phoenix, AZ. The landlord, Riviera Business Management, LLC, was represented by Jeremy Stour with Commercial Properties, Inc.

Matt Harper, CCIM, represented the landlord, Janaland, LLC, in a 60-month office lease for 1,700 SF at 6601 W. Indian School Road, Phoenix, AZ. The tenant, Cash Time Title Loans, Inc., was self-represented.

Laurel Lewis represented the tenant, One Community Media, LLC, in a 39-month office lease for 1,574 SF at 2600 N. Central Ave., Phoenix, AZ. The landlord, 2600 Tower, LLC, was represented by Michael Crystal with Cushman & Wakefield.

Joe Pequeno and Troy Giammarco represented the tenant, Step By Step WAC, LLC, in a 39-month office lease for 5,032 SF at 4201 N. 16^th St., Phoenix, AZ. The landlord, Bissuq Real Estate, LLC, was represented by Jamie Swirtz with CBRE.

Matt Harper, CCIM and Thomas Bean, CCIM, represented the landlord, Sun City Professional, in a 9-month office lease for 514 SF at 12630 N. 103^rd Ave., Sun City, AZ. The tenant, ALK Asphalt, LLC, was self-represented.

Matt Harper, CCIM, represented the landlord, Grand Center Plaza, LLC, in a 24-month retail lease for 1,107 SF at 11001 N. 99^th Ave., Peoria, AZ. The tenant, Pinnacle Solution, LLC, was self-represented.

Submit sales and leases to [email protected]

Phoenix’s top four industrial leases totaled 4.6 million sq. ft. – 2022 Sets Record for 1 Million-Sq.-Ft. Industrial Leases

PHOENIX – February 10, 2023 – Demand for industrial & logistics warehousing space is driving an increase in megawarehouses, according to a new CBRE report. Phoenix had four of the largest 100 industrial lease transactions in 2022.

Nationally, there were an unprecedented 63 signings for 1 million sq. ft. or more, up from 57 in 2021. This was a key finding in CBRE’s analysis of the 100 largest industrial & logistics leases completed last year. 

In 2022, Phoenix had four of the top 100 leases for a total of 4.6 million sq. ft. of industrial space, with two of the leases being traditional retailer/wholesalers. E-commerce had the largest square footage leased in the Valley at 1.2 million sq. ft., and third-party logistics (3PL) secured 1.2 million sq. ft. in Glendale.

“With four leases over 1 million sq. ft. in 2022, Phoenix is evolving into a retailer/wholesaler and distribution-focused market,” said Cooper Fratt, executive vice president at CBRE. “When selecting regional distribution center locations, Phoenix continues to attract occupiers with a robust and affordable labor market and fewer business regulations than other locations across the region.”

Representing over half of the top 100 leases, traditional retailers/wholesalers expanded their footprints to accommodate e-commerce sales growth and to hold more inventory to guard against supply chain disruptions. Third-party logistics (3PL) operators took second place, signing 18 of the top leases, up from 10 in 2021. E-commerce companies followed closely behind with 14 of the top 100, down from 21 in 2021.

Overall, the average size of the 100 top leases was 1.07 million sq. ft., compared to 2021’s previous record of 1.05 million sq. ft. Top markets for these leases included traditional mainstays like the Inland Empire, Chicago and Atlanta, as well as growing markets such as Dallas-Fort Worth, Phoenix and Columbus.

To read the full report, please click here.

PHOENIX – Meridian, a full-service commercial real estate developer and owner of medical real estate, is pleased to announce that it has completed the renovation and repositioning of Grunow Memorial Medical Center, a landmark 53,000-square-foot, two-story, medical office building located at 926 East McDowell Road in Phoenix, Arizona. Once the repositioning was completed, Meridian formed a joint venture with Harrison Street, a Chicago-based investment management firm, for the recapitalization of Grunow Memorial Medical Center.

“We are very excited about partnering with Meridian on the ownership of this iconic building,” said Mike Gordon, Senior Managing Director at Harrison Street. “The partnership on Grunow Memorial Medical Center aligned extremely well with our firm’s strategy of investing in high quality healthcare real estate.”

In September 2017, Meridian purchased the then 25 percent leased building located adjacent to Banner Health University Medical Center’s Phoenix Campus and Phoenix Children’s Hospital. The property is now approximately 90 percent leased to 12 tenants, including DaVita Dialysis and a well-known regional infusion group.

“The acquisition of Grunow Memorial Medical Center represented Meridian’s first major transaction outside of California. This repositioning is a great example of how Meridian is leveraging its medical expertise to expand into new markets and solve real estate needs for our clients,” said Meridian’s Senior Vice President Mike Conn.

“The historic Grunow Memorial Medical Center represented a challenging value-add opportunity where we could assist our clients with their outpatient ambulatory strategy,” Conn continues. “We added fire sprinklers to the entire building, upgraded ADA, replaced the HVAC, reduced the load factor by reconfiguring space, and updated many of the second-generation medical space for our users. We then brought in Harrison Street as a trusted partner to collaborate on the remaining lease-up and ownership of the property.”

Grunow Memorial Medical Center is located in the Coronado Historic District of Phoenix. It was built in 1931 and designed by Arizona architect Lester A. Byron. “Grunow was one of the first clinics of its kind in Arizona where doctors could be located near a hospital,” Conn noted. “It also created the opportunity for patients to see their doctor in more of a suburban setting rather than having to go downtown.”

Avison Young Principals Alexandra Loye and Julie A. Johnson, CCIM, from the firm’s Phoenix office, assisted Meridian in both the leasing activities and the recapitalization of the property. “Avison did a great job helping us reposition this project. The building was mostly vacant without much leasing activity prior to our acquisition, and Julie and Alex performed well in helping us stabilize the asset,” Conn noted. KQ Architects assisted with capital improvements and tenant improvement buildouts.

Meridian also closed escrow on the sale of a repositioned medical clinic in Long Beach. That building was sold as a triple-netleased investment. Meridian currently owns and manages healthcare properties throughout the western United States.