Newmark Grubb Knight Frank (NGKF), announces the sale of Jackson Street Industrial by Tiernay Properties Inc., a 307,164-square-foot industrial property located on four city blocks in central Phoenix. Built in the 1920s, the property was originally home to the Arizona Compress and Warehouse Co. building. Located at 1245-1555 E. Jackson Street, the warehouse was built during the peak of Pima cotton production and is one of the few remaining in the Valley from that era.
Consisting of several original masonry structures, the property once had access to the rail line and includes a three-story cotton gin and a safe, originally used to store money for the cotton exchange. The buyer was Presson Corporation, which intends to improve the facility. NGKF Capital Markets’ Erik Marsh and Chris Strickfaden led the transaction, providing oversight on behalf of both Presson Corporation and Tiernay Properties, Inc. on the sale.
“Jackson Street Industrial is a true value-add opportunity for Presson Corp,” remarked Erik Marsh, managing director at NGKF. “The properties’ rich history, infill location in the heart of central Phoenix, adjacent to downtown, high occupancy rate and low price per square foot creates exceptional appeal.” Originally used for cotton processing and warehousing, the three multi-tenant buildings have witnessed many uses over time and are currently 100% occupied. “Urban infill is in high demand and the upside potential for Presson Corp. is great. I can’t wait to see how the property is transformed in time.”
“We are pleased to see interest in the neighborhoods surrounding Downtown Phoenix. This is a great old building with wonderful potential. We look forward to seeing the Presson Corporation’s vision for the building and positive impact on the community”, expressed Dan Klocke, executive director, Downtown Phoenix Partnership.
NGKF research pinpoints an increased demand for the mid-sized users who are facing a dwindling supply in certain submarkets (typically in the 20,000 to 150,000 square feet range). “Jackson Street Industrial fits this niche perfectly,” added Marsh. Central Phoenix, low rents, light industrial use.