New Phoenix-area industrial development financed with $22.75M loan

PHOENIX, March 14, 2022 – JLL Capital Markets announced today that it has arranged $22.75 million in construction financing for the development of Verrado – 10 Industrial, two state-of-the-art, speculative industrial facilities totaling 249,600 square feet of premier distribution, R&D and light manufacturing space in the western Phoenix-area community of Buckeye, Arizona.

JLL worked on behalf of the borrower, Kentwood Ventures, to place the five-year (inclusive of extensions), floating-rate construction loan with CIBC Bank USA.

Verrado – 10 Industrial’s strategic location on 18.68 acres at the southwest corner of West Roosevelt Street and North Verrado Way provides future tenants immediate access to Interstate 10 and proximity to AZ Loop-303, which will enable connectivity to anywhere within the Phoenix MSA in under one hour and to major West Coast markets such as Albuquerque, Las Vegas, San Diego, Los Angeles and El Paso within a one-day drive and, in some cases, allow for same-day round-trip deliveries. Additionally, Buckeye is positioned within the CANAMEX Corridor, which, when completed between 2030 and 2040, will enable Interstate 11 to pass through Buckeye, creating critical supply-chain infrastructure linking Canada and Mexico.

With an anticipated completion date of March 2023, Verrado – 10 Industrial will be constructed with the state-of-the-art features modern distribution, light industrial and R&D tenants seek such as a rear-load configuration, 28-foot clear heights, 32 drive-in doors and ample parking. The project is situated in Phoenix’s West Valley Industrial submarket, which, according to JLL Research saw a substantial increase year-over-year for direct asking rent, and vacancy is at a low 7.6 percent at the end of the fourth quarter of 2021.

The JLL Capital Markets Debt Placement team representing the borrower was led by Director Jason Carlos and Analysts Jarrod Howard and Joe Torkelson.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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