CapRock Partners, a leading industrial investor and developer in the Western U.S. with a robust portfolio of 23 million square feet, today announced the sale of one of its value-add assets, a 110,710-square-foot industrial property in the highly sought-after Phoenix Sky Harbor submarket. The asset was acquired by a global real estate investment advisor for an undisclosed amount. The property is currently fully leased by Greif, a global leader in industrial packaging products and services.
CapRock Partners acquired the property in 2017 in an off-market transaction as part of its value-add strategy. At the time of acquisition, the property had significant functional challenges and CapRock Partners implemented extensive capital renovations and improvements to elevate the asset to a Class A status. CapRock Partners enhanced the building’s functionality and curb appeal with a new storefront, windows and landscaping and upgraded the 30-foot clear dock-high building with new ESFR sprinklers. It also reconfigured the yard area to create a fully secured truck court and added trailer parking stalls. The renovated building features 2,000 square feet of high-image office with Loop 202 freeway frontage, 22 dock-high doors and LED warehouse lights.
“This repositioning is a great example of our Western U.S.-focused value-add strategy where we tap into our market expertise and experience to convert underperforming assets into institutional quality buildings that meet the demand,” said Nicholas Ilagan, senior vice president, asset management at CapRock Partners. “The acquisition of this asset in 2017 marked our first foray into Phoenix and our appetite to grow our portfolio in this market remains strong, especially given the pandemic-led ecommerce boom driving new demand for warehouse and distribution space in the region.”
Located at 225 S. 51st Street, the property enjoys an ideal location, minutes from Sky Harbor International Airport and with immediate access to local freeways. High-quality corporate neighbors include Amazon, Honeywell International, Inc., Boeing and Ferguson Enterprises.
Since its first regional acquisition in 2017, CapRock Partners has acquired or is in escrow on more than 1 million square feet of industrial space in the Phoenix metro area. Recently the firm acquired two Class A properties, 7200 W. Roosevelt St. and 4615 W. McDowell Rd., respectively 216,880 and 146,500 square feet, as part of its third value-add fund, CapRock Partners Industrial Value-Add Fund III. The fund focuses solely on the acquisition of middle market, value-add industrial properties, generally valued between $20 million to $50 million across the Western U.S. and is on track to reach a final closing by year-end at its hard cap of $250 million. CapRock Partners also has three standalone buildings totaling 368,454 square feet currently under construction across the southwest industrial submarket of Phoenix with anticipated delivery dates in Q2 and Q3 2021.
Bob O’Neill, senior vice president, acquisitions at CapRock Partners added, “This pandemic has solidified the Phoenix metro area’s position as a key logistics hub in the Southwest and CapRock Partners stands at the ready to seize opportunities and selectively acquire value-add properties across this market. The acquisition of the 51st Street building is a prime illustration of CapRock’s capabilities as we were able to quickly assess and solve functionality challenges, reintroduce the building to the brokerage community, secure a long-term lease with a credit tenant, and ultimately sell the property as a stabilized investment to a high-quality institutional investor.”
CapRock Partners was represented by Will Strong of Cushman & Wakefield. The buyer represented itself.