Record-setting pricing achieved for flex park in Flagstaff
JLL Capital Markets completed the $18.26M sale and arranged $11.9M in acquisition financing for Pulliam Innovation Park
PHOENIX, Aug. 2, 2021 – JLL Capital Markets announced today that it has closed the $18.26 million sale of and secured $11.9 million in acquisition financing for Pulliam Innovation Park, a four building flex park totaling 91,372 square feet of industrial, life sciences, R&D and office space in Flagstaff, Arizona. The sale was record pricing on total price and on a per square foot basis ($200 per square foot) for industrial, office or flex properties in Flagstaff.
JLL represented the seller, Phoenix-based Kentwood Ventures. The buyer purchased the four-building portfolio as part of a 1031 exchange and engaged a separate JLL team to place the acquisition loan with a state regional bank.
Pulliam Innovation Park was developed in phases between 2000 and 2007 by Kentwood Ventures, who designed the multi-tenant property for a variety of uses. The park is 92 percent occupied by a diverse tenant roster that includes Translational Genomics Research Institute (TGen); Unisource Energy Services; Machine Solutions, Inc.; FAA; Vulcan Materials Company; POBA Medical and other tenants that have invested in their spaces. The highly accessible park is situated on 21 acres at 2051, 2951, 3001 and 3051 W. Shamrell Blvd. directly off Interstate 17 and adjacent to the Pulliam Airport.
“This was a complex transaction that included a 1031 exchange buyer, a city of Flagstaff participating ground lease and very limited comparable sale and lease transactions in the established Flagstaff market,” said Kentwood Ventures Partner, Jim Zemezonak. “Brian Ackerman and the JLL team did a great job educating in-state and out-of-state buyers to make this a sought-after acquisition opportunity. The sale process attracted a buyer who will continue to improve the property after the seller’s 20 years of ownership.”
The JLL Capital Markets Investment Sales Advisory team that represented the seller was led by Managing Director Brian Ackerman and Senior Director Ben Geelan. Managing Director Tony Lydon provided market and leasing expertise.
The JLL Capital Markets Debt Placement team that represented the new owner included Director Jason Carlos.
“Kentwood Ventures developed a property that had low historic vacancy with a strategic balance of corporate and technology users that expanded over the years,” Ackerman said. “This organic growth along with a flexible and functional design generated consistent demand at Pulliam Industrial Park from high-quality office, research and manufacturing tenants.”
Phoenix-based Kentwood Ventures is an investor and developer; its Kentwood 303 project, a 270,000-square-foot industrial development designed to accommodate mid-bay tenants, is located in Glendale, Arizona, and will be completed in August 2021.
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 advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 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 91,000 as of March 31, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.