JLL sells Phoenix Logistics Center portfolio for Overton Moore for $18.4 million
Strong market performance and continued confidence in Phoenix’s industrial market future has spurred the $18.4 million sale of Phoenix Logistics Center – sold this week by the Phoenix office of JLL on behalf of a joint venture between Overton Moore Properties and PCCP LLC, and acquired by Colony Northstar.
“The Phoenix Logistics portfolio represents a quality multi-tenant industrial asset that is difficult to replicate in today’s market,” said Jason Hines, Vice President of Overton Moore Properties. “We are pleased with the sale and the overall execution of our value-add strategy in the Phoenix industrial market.”
“Phoenix Logistics Center is institutionally maintained, with an extremely strong credit tenancy and the potential to add value through the development of two acres of excess land,” said Mills. “It is an exceptional opportunity that brings together all of the attributes that an investor looks for when seeking a Class A industrial asset.”
Phoenix Logistics Center totals 245,890 square feet in two buildings located at 420 S. 53rd Ave. and 1002 S. 56th Ave. in Phoenix’s Southwest submarket. Both buildings have been recently refurbished with $1.75 million in capital improvements, including new roofing, HVAC, T-5 lighting, paint, landscaping and power and plumbing upgrades. The buildings sit on 13.8 acres, including two acres of excess land that can be developed, paved or used to expand the 53rd Avenue building.
Each building can accommodate single- and multi-tenant configurations, with dock-high and grade-level loading, and 24’ to 30’ clear heights. The portfolio is currently 91.3 percent leased to five quality tenants, including long-term anchor tenant Blue Line Foodservice Distribution, a division of Little Caesar Enterprises.
Phoenix Logistics Center is located 1.9 miles from the Loop 101 and 2.3 miles from I-10, offering direct access to all points in metro Phoenix, as well as key distribution routes to California, the Southwest and beyond.
According to JLL, industrial vacancy rates in Southwest Phoenix have declined from 20.4 percent in 2009 to 11.4 percent as of year-end 2016. Asking rental rates have increased an average of 4.5 percent every year since 2011. These factors, combined with robust population growth, employment growth and housing recover, have increased demand for available space across the local industrial market.