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News release

PHOENIX, AZ

Jones Lang LaSalle Brokers Sale of $9.95M Metro Phoenix Distribution Building

Purchase by global leader Prologis is a “stamp of approval” for Valley industrial market


PHOENIX, August 30, 2011 – Jones Lang LaSalle Industrial Solutions experts have brokered an all-cash sale of a 302,640-square-foot distribution building at 9704 W. Roosevelt Road in Tolleson, Ariz. The $9.95 million purchase was made by a limited partnership formed by Denver, Colo.-based Prologis, Inc. (NYSE:PLD), the world’s largest industrial landlord with approximately 600 million square feet of distribution space in 22 countries.

Sade Trust listed the 1995-built Tolleson, Ariz. property for sale when long-time tenant Reckitt Benckiser vacated the building and expanded operations in Utah. Managing Directors Anthony J. Lydon and Marc Hertzberg in the Phoenix office of Jones Lang LaSalle represented the building seller, the Paul and Eleanor Sade Trust of Alamo, Calif. and have also been assigned the leasing efforts for the new owner, Prologis. The team already has tenant interest to lease the entire building and bring roughly 200 jobs to the area. Fritz Wyler, Prologis Senior Vice President and Investment Officer, represented Prologis.

“Prologis is a global leader, so its decision to buy here is a significant stamp of approval,” said Lydon. “This purchase tags Phoenix as a rising market with a relative lack of supply for larger industrial space solutions.”

Although Prologis has purchased about three million square feet of Phoenix industrial space in the past two decades, 553,445 square feet of that space was purchased in just the last few weeks.

According to Jones Lang LaSalle, when the Tolleson property is leased, there will only be four available distribution buildings in southwest Phoenix that offer at least 200,000-square-feet of contiguous space. Three years ago, there were 24 properties in this category.

“Phoenix is running out of larger industrial buildings,” Lydon said. “In the last 18 months, we’ve seen more than six million-square-feet of net industrial space absorbed by companies like Amazon, Genco, Sub-Zero and Suntech. We’re currently tracking approximately 20 out-of-state industrial users that are seeking about eight million square feet of additional industrial space in Phoenix.”

Wyler added, “This is a well-located, cross-dock building with encouraging tenant activity. “That typically makes for a very positive, win-win outcome for Prologis and our market partners.”

Jones Lang LaSalle is a leader in the Phoenix commercial real estate market. Employing nearly 350 of the area’s most recognized industry experts, the firm offers office and industrial brokerage, tenant representation, facility and investment management, capital markets and development services. In 2010, the Phoenix team completed 3.2 million square feet in lease transactions, directed $60 million in project management and currently has 13.5 million square feet under management.

About Jones Lang LaSalle
Jones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2010 global revenue of more than $2.9 billion, Jones Lang LaSalle serves clients in 70 countries from more than 1,000 locations worldwide, including 200 corporate offices.  The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 1.8 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with more than $45.3 billion of assets under management. For further information, please visit our website, www.joneslanglasalle.com.
 
About Prologis
Prologis, Inc. is the leading owner, operator and developer of industrial real estate, focused on global and regional markets across the Americas, Europe and Asia. As of June 30 2011, Prologis owned or had investments in, on a consolidated basis or through unconsolidated joint ventures, properties and development projects expected to total approximately 600 million square feet (55.7 million square meters) in 22 countries. The company leases modern distribution facilities to more than 4,500 customers, including manufacturers, retailers, transportation companies, third-party logistics providers and other enterprises.