The freestanding property is 100% leased to a Fortune 500 company that is also one of the largest containerboard manufacturers in the U.S. Scottsdale-based Globe Corporation sold the single-tenant property to an undisclosed buyer for $17.3 million.
Will Strong, Executive Managing Director with Cushman & Wakefield’s national Industrial Advisory Group and who handled the transaction, said, “This was a compelling investment offering to acquire a Class A, fully leased industrial project institutionally owned, maintained and managed by a high-quality owner and occupied by a multi-national corporation with mission critical uses. There is also significant tenant investment and infrastructure at this location.”
Strong continued, “This asset also offered investors the strongest potential to maintain full occupancy while significantly improving project cash flow throughout the life of the property.”
Adding to its investor desirability is the facility resides in the heart of one of the best performing markets in the U.S. and is surrounded by many high-profile corporate companies. The facility is also within Phoenix’s favorable Riverside Tax District, the most economical of all in Southwest Phoenix. Furthermore, there are also high barriers of entry with virtually no land left to build competing product located in true Southwest Phoenix.
Located at 441 South 53rd Avenue, the facility is situated on 10.0 acres and was originally developed in 1988 but was expanded in 1995, with further capital improvements made since. The building features 9,000 sf of office space, 28 dock positions, 1 grade level door and 9 rail doors. Strong noted, “There is currently an extremely limited supply of industrial buildings with active rail and side yard in the market.”
The facility’s strategic location in the Freeport Center— one of the original industrial parks in Southwest Phoenix—is less than two miles from Interstate 10 and approximately one mile from the recently completed Loop 202 freeway extension, which has added 22 miles of new freeway benefiting logistics companies.
