Prime industrial redevelopment site in Phoenix market sells for $9.3M
JLL Capital Markets closed the sale of the development opportunity in Tempe and has been engaged to lease the property for the new owner
PHOENIX, Jan. 10, 2022 – JLL Capital Markets announced today that it has closed the $9.3 million sale of an 18-acre prime development site for a to-be-built, two-building, 197,000 square-foot speculative industrial property in a last mile-location on West Warner in Tempe, Arizona.
JLL arranged the sale on behalf of the buyer, Opus Development Company, L.L.C., who acquired the property. Construction is set to begin in first quarter of 2022, and the buyer has engaged JLL’s leasing team.
The site is at 1320 and 1330 West Warner Rd. in the southern part of Tempe, blocks from Interstate 10. This sought-after logistics location provides access to the vital transportation infrastructure for the entire Phoenix MSA. With this dense location, a tenant can quickly reach 206,191 residents within the growing submarket, which is expected to balloon to 221,587 residents by 2026. Additionally, future industrial tenants have an entry into both Mexico and Southern California.
“We couldn’t be more excited to again be developing in Tempe,” said Larry Pobuda, executive vice president and general manager of Opus Development Company. “We knew this was a fantastic opportunity when it was first presented to us.”
“There was a lot of planning that went into purchasing this site, and we can’t wait to get started with construction,” added Matt Visnansky, senior director with Opus Development Company.
The area is a melting pot for just about every use, including residential communities, retail, office and hotel. According to JLL Research, the Phoenix industrial market recorded a strong performance to close out the third quarter of 2021. The building will be located within the Tempe Industrial submarket, which is currently incredibly tight with a vacancy rate of only 4.4 percent, one of the lowest in the Phoenix market. Additionally, there have been no new deliveries year to date with zero square feet currently under construction, driving up average rental rates.
The JLL Capital Markets Investment Sales and Advisory team that represented the buyer was led by Managing Director Brian Ackerman and Analyst Connor Clark.
“Opus quickly saw the vision for a new development at this location given the proximity to the Interstate 10 and 202 Freeway’s, recent opening of the 202 expansion, its prime in-fill location and prominent Tempe address,” said Ackerman, who, in addition to formally listing properties for sale, consistently identifies off-market opportunities for private capital clients and developers.
The JLL Leasing Team representing the new owner includes Managing Directors Pat Harlan and Steve Larsen.
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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JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion in 2020, operations in over 80 countries and a global workforce of more than 95,000 as of September 30, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.