JLL lease at G303 fills brand-new, existing building and kicks off project expansion
Globally recognized mattress manufacturer MLILY has committed to a 1.25 million-square-foot lease at Glendale 303 (G303). The lease fills a just-completed, 569,520-square-foot industrial building and initiates an expansion of G303 to fulfill the tenant’s larger, single-building lease requirement.
The Class A industrial project is a development of international real estate firm Hines, with funds managed by Oaktree Capital Management L.P. (Oaktree). When complete, G303 will become the largest single-building Hines development to date in the U.S.
Managing Director Bill Honsaker and Senior Vice President John Lydon from the Phoenix office of JLL represented Hines in the lease transaction. Payson MacWilliam and Yang Chen of Colliers International represented the tenant. The Southwest Division of Graycor Construction Company serves as the project’s general contractor.
“The rise of e-commerce that we experienced during the pandemic has created a new, steady level of demand for modern logistics and supply-chain-savvy industrial space, particularly in prime geographic and demographic locations like Phoenix,” said Courtney Schneider, Director at Hines who oversees industrial development for Arizona and Colorado. “G303 was designed to meet the needs of a modern industrial user just like MLILY. We are thrilled to welcome them.”
According to the latest JLL Phoenix industrial market report, the Valley recorded more than 5 million square feet of positive net absorption during the first two quarters of 2021, marking the 31st and 32nd straight quarters of positive Phoenix industrial absorption dating back to the second quarter of 2013.
“Within the Phoenix industrial market, requirements for Class A warehouse and distribution space have been particularly high – easily outpacing demand for any other type of industrial product,” said Honsaker. “G303 was in a prime position to capitalize on that trend with a high-quality building that was designed to expand and is strategically located within the Valley’s hottest industrial corridor – at the center of a very young and diverse talent pool.”
G303 is located immediately off the Loop 303 freeway between Glendale Avenue and Bethany Home Road. Conceived as a two-phase project, the building was designed with the ability to combine into a larger building for a single, significant user like MLILY.
“Hines and Oaktree wisely created scalability at G303,” said Todd Ostransky, Graycor Construction Company Vice President of the Southwest Division. “That is a very attractive option for a company looking to plant a flag and grow in our immensely popular industrial sector and was the perfect solution for MLILY.”
The newly completed G303 building features 40-foot clear height, 60-foot speed bays, abundant dock-high loading doors and highly functional footprints. It features a sleek exterior design, with the ability to accommodate more than 550 cars. The project also includes a basketball court amenity for employees to enjoy during break times.
Construction on the G303 building expansion will begin during Q4 2021 and complete by Q4 2022.