Phoenix & Southwest CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
Loan Reflects Recent Demand Surge in Tempe SW Industrial
A recent demand surge has overtaken the Tempe Southwest industrial submarket, with little new supply expected to enter the market. Since 2012, vacancy in the submarket has dropped from around 12.2 to 4.7 percent. During the same time period, overall industrial rents in the submarket have grown by an average 4.3% CAGR.
With that demand in mind, a $40.2-million loan was secured for the acquisition and redevelopment of two office assets into three industrial buildings totaling approximately 450,000 square feet. JLL capital markets worked on behalf of the borrower ViaWest Group to place the four-year floating-rate loan with PCCP LLC. The financing includes initial funding for the acquisition and future funding for the redevelopment and construction of the project.
The two assets are located at 6820 S. Harl Ave. and 910 W. Carver Rd. ViaWest plans to demolish the existing 103,000-square-foot building on Harl and replace it with two new buildings totaling approximately 350,000 square feet. The Carver asset is a former industrial-to-office conversion and will be repurposed back to its original use as a 100,000-square-foot industrial building. Construction is expected to commence in January 2022.
The JLL team representing the borrower was led by Brandon Roth, Jason Carlos and Charles Halladay.
For comments, questions or concerns, please contact Lisa Brown
- ◦Financing
- ◦Sale/Acquisition
