By Eric Jay Toll for The Arizona Builder’s Exchange
ProLogis Inc. is bullish on the Phoenix metropolitan area. The Denver-based REIT is selling properties, buying properties and building new industrial facilities. The company—reportedly the largest industrial real estate developer in the world—is moving forward with plans to develop over 700K SF in industrial floor space in two projects. It’s building 280K SF in two properties. Just last week, the company completed a $15.2M ($50/SF) 303K SF building sale.
Reportedly, ProLogis is searching for more industrially-developable lands as the Phoenix market is stifled with the conundrum of industrial prospects with immediate big-space demand and the risk-adverse market having nothing to immediately offer.
Business Real Estate Weekly reports the company is paying $6.2M for a 106K SF industrial building and adjacent 16 acre site tapped for a 221K SF cross-dock structure near 40th Ave. and Buckeye Rd. ProLogis reportedly has a tenant to take the entire structure in a deal brokered by Lee & Associates. ProLogis anticipates a fall start for the second building with a third quarter 2013 completion.
The company is readying a 55th Ave. and Lower Buckeye Rd. site for a 486K SF spec warehouse – although it’s expected that the T.J. Maxx and Marshall’s stores will move into the facility from their newly leased 9704 W. Roosevelt Rd., Tolleson, location.
ProLogis acquired a 175K SF warehouse from EastGroup Properties L.P. for $7.0M ($40/SF) at 601 S. 65th Ave. in Phoenix. BREW reports that the fully leased Estrella Business Park was purchased by EastGroup for $5.3M in 1998.