Phoenix – CBRE has completed a 48,735-square-foot lease at Estrella Business Park located at 1010 S. 65^th Avenue in Phoenix, Ariz. Propak Logistics, Inc. has leased the space marking the companies first location in metropolitan Phoenix and bringing the property to 100 percent leased.

Pat Feeney, Dan Calihan and Rusty Kennedy with CBRE’s Phoenix office, along with Bob Pielsticker of CBRE Tulsa, represented Fort Smith, Ark.-based Propak. The landlord, EJM Development Co. of Los Angeles, Calif. Propak, negotiated on its own behalf.

“This was a unique user requirement and the space at Estrella Business Park was a perfect match. The space in question is an end cap with an adjacent 3-acre side yard, which will allow Propak to meet the needs of their major clients in and around the metro area,” said CBRE’s Feeney.

“This transaction is another testament to the health of the Phoenix industrial market. Leasing activity, particularly in the 20,000 to 200,000-sq.-ft. range, has been strong all year,” continued Feeney. “In fact, year-to-date these types of transactions total more than 1.4 million sq. ft. of absorption. This is important because the overall health of the Metropolitan Phoenix industrial market has historically been supported by midsized users/space and this size range shows no signs of slowing as we round out 2014 and head into 2015.”

“We are very happy to have Propak as one of our valued tenants in the Phoenix market and look forward to a long and mutually beneficial relationship with the company,” said Fred Stiles, Regional Director with EJM Development Co. EJM, one of the largest industrial property owners in metropolitan Phoenix, currently owns 5.5 million square feet of industrial buildings across the Valley.

Propak, a provider of leading-edge logistics, transportation and supply chain management solutions, will use the new location to service Walmart, one of the company’s major clients. Propak is a major pallet supplier for the retail giant and the new space at Estrella Business Park is conveniently located between two of the company’s major distribution centers in Casa Grande and Buckeye. Propak’s lease brings Estrella Business Park to full occupancy.

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Phoenix, AZ– Goodyear Gateway South, the ±221 acre industrial zoned park being developed by EJM Development Co. just north of the Phoenix Goodyear Airport, has announced its first user. Michael Lewis Co. (MLCo) has purchased a 30-acre parcel for development. The financial terms of the transaction were not disclosed.

Pat Feeney, Dan Calihan and Rusty Kennedy with CBRE’s Phoenix office represented EJM Development in the transaction. MLCo was represented by Andy Cloud with Cassidy Turley.

MLCo is a global provider of in-flight and catering products, logistics and supply chain management solutions. MLCo plans to build a ±250,000-square-foot warehouse and distribution facility on the newly-purchased, 30-acre parcel at Goodyear Gateway South, taking advantage of the park’s foreign trade zone (FTZ) designation. This facility marks an expansion for the company in metropolitan Phoenix. The new facility will increase the company’s current operation and will feature a combination of refrigerated space, dry storage and office space.

“This purchase and planned facility is a great example of the draw of an FTZ designation,” said Fred Stiles, Regional Director with EJM Development Co. “FTZ status allows metropolitan Phoenix to compete for companies doing business internationally. What’s more, in Arizona there is an additional tax benefit for properties in FTZs that allows for significant reductions in both real and personal property tax.”

“We are thrilled to have Michael Lewis Co. locate in Goodyear” said Mayor Georgia Lord. “This addition to our business community will bring with it more than 100 jobs and helps us launch one of our premier employment corridors – the Goodyear Gateway South development. We appreciate EJM Development’s investment in infrastructure on this property. As a result of our strong partnership with them, we are confident we will continue to see industry investment in this area and additional jobs for our City.”

This land purchase comes just months after EJM Development broke ground on significant infrastructure at Goodyear Gateway South. In May of this year the developer began work on $5 million worth of construction on streets and utilities, which is nearing completion and should be finished by year’s end. The street improvements include full width 143rd Avenue from Van Buren Street to Yuma Road and improvements to Yuma Road, as well as a traffic signal at 143rd and Van Buren.

“EJM strategically laid the framework for the Goodyear Gateway South,” said CBRE’s Feeney. “The West Valley has emerged as the next epicenter of major commercial development in metropolitan Phoenix and major employers are looking to locate and expand in the Valley. It’s important that we are able to offer high-quality, industrial-zoned, shovel-ready sites. The development of infrastructure, streets and utilities at Goodyear Gateway South is a major step toward being ready for incoming users.”

The ±221-acre, foreign trade zone-approved Goodyear Gateway South is ideally situated for users that transport goods intra- and inter-state. Additionally, the park provides companies access to the talented, deep and productive workforce living in the immediate area, while freeways put it within an hour of all 3.8 million workers in Greater Phoenix. Goodyear Gateway South is part of the larger ±350 Airport Gateway at Goodyear master-planned community. At build-out, Airport Gateway will feature approximately 3 million square feet of planned industrial/work space at Goodyear Gateway South and at Goodyear Gateway North, home of the Cancer Treatment Centers of America’s state of the art medical treatment facility, an additional 2.5 million square feet of upscale regional retail, hotel, office and medical office uses.

Schoeller Arca Systems, Inc. to Expand Existing Operations

Phoenix – CBRE has negotiated the lease of a 77,046-square-feet at Goodyear Crossing Industrial Park located at 3801 S. Cotton Lane in Goodyear.

Schoeller Arca Systems, Inc., a Netherlands-based plastic injection molding manufacturer, has leased the warehouse and distribution space to accommodate production from its approximately 150,000-square-foot manufacturing facility located across the street at 4320 S. Cotton Lane.

Pat Feeney, Dan Calihan and Rusty Kennedy of CBRE’s Phoenix office represented the landlord, Indianapolis, Ind.-based Duke Realty, in negotiating the long-term lease agreement. Schoeller Arca Systems was self-represented. The exact financial terms of the transaction were not disclosed.

“The metropolitan Phoenix industrial market is definitely improving. We’ve seen net positive absorption of 2.1 million square feet through the second quarter and 3.7 million square feet year-to-date,” said CBRE’s Feeney. “The Valley is proving an attractive place for major industrial users to locate and expand. This lease is a prime example of that trend. With this transaction, SAS brings their total footprint in metro Phoenix to over 227,046 square feet, which is a sizeable investment. Activity is up because companies like SAS recognize the benefits of operating in the Valley.”

Schoeller Arca Systems, whose U.S. headquarters is located in Chicago, first entered the Phoenix market in 2011 when the company opened the facility at 4320 S. Cotton Lane which manufactures recyclable and reusable plastic crates for harvesting.

This lease brings the existing buildings at Goodyear Crossing Industrial Park to 100 percent occupied. Other tenants at the park include Suntech, a major producer of solar panels; e-commerce giant Amazon; and Macy’s, which operates an e-commerce distribution facility that was recently expanded by 360,000 square feet and now totals 1 million square feet. With all existing buildings fully leased, Duke Realty is actively and aggressively pursuing build-to-suit and other potential tenant opportunities for the remaining 130 to 150 acres of improved, rail-served industrial lots that also offer foreign-trade-zone status.

To learn more contact Feeney, Calihan and Kennedy at (602) 735.5555.