36th Street Partners and Cale Enterprises announced today they have completed the approximately $13.45 million sale of Desert Gateway II, a two-building industrial project located at 747 and 777 West Pinnacle Peak Road in Phoenix, AZ. The joint venture finished construction on the Class A, 76,874-square-foot (sf) project in January 2018.
36th Street Partners/Cale Enterprises was self-represented in the off-market transaction. The buyer was a California-based private investor. Additionally, Dylan Scott, Mike Ciosek, and Eric Bell of Kidder Matthews were responsible for leasing the property prior to the sale which is currently 95 percent occupied.
Desert Gateway II features two multi-tenant buildings totaling 36,004 sf and 40,870 sf on six acres. They include 20’ clear height, 12’ by 14’ overhead doors, office build-out and air conditioning throughout the office and warehouse space. The project is adjacent to the FedEx distribution center, and is a five-minute drive to Happy Valley Town Center and the 1.1 million sf Shops at Norterra. It is also a 20-minute drive to the Phoenix Sky Harbor International Airport.
“Our extensive experience and market knowledge have put us in position to deliver quality product in a highly competitive market,” said Trey Preissman, Project Manager for Cale Enterprises. “We are able to identify, finance and construct efficient projects that directly meet the needs of local tenants.”
“We are pleased to execute this sale of Desert Gateway II,” said Adam Norvell, Founder of 36th Street Partners. “At $175 per sf, this is one of the highest prices paid for a multi-tenant industrial property in Phoenix and is testimony to the confidence in this thriving market despite the pandemic.”
This transaction marks 36th Street Partners and Cale Enterprises second successful multi-tenant industrial project completed and sold in Phoenix. In October 2019, the partnership sold the adjacent Desert Gateway I for just over $24 million. The two-building project totals 173,235 sf and was 95 percent leased upon close of escrow.
Norvell added that 36th Street Partners is in the process of identifying additional development opportunities in Phoenix and other key markets in the western states.
Cale Enterprises is a real estate investment and development company that focuses on multifamily and multi-tenant industrial assets in the Western United States, with current projects totaling over $100 million in ground-up development that are set to deliver over the next two years.
36th Street Partners is a Los Angeles-based opportunistic real estate development company founded in 2012 by Adam Norvell. The company achieves superior risk adjusted returns through an overly thoughtful approach to development.