By CapRock Partners
CapRock Partners has announced the development commencement of CapRock West 202 Logistics, the largest speculative industrial real estate project in the history of the City of Phoenix.
CapRock is transforming one of the largest remaining infill land sites in the Southwest Phoenix submarket into a state-of-the-art eight-building, Class A industrial warehouse complex totaling 3.4MSF. The project will be highly accessible to key logistics transportation routes and bring much needed modern warehouse space to the Phoenix metropolitan statistical area as it continues to experience robust population and employment growth. CapRock secured the land for the project’s development via a long-term land lease. Terms of the transaction are not disclosed.
CapRock West 202 Logistics’ eight buildings will range from 228KSF to 1.065MSF, with clear heights between 32-feet and 40-feet. All buildings will feature dock-high and ground-level loading with secured concrete truck courts. Each of the buildings are designed with varying depths and are divisible to accommodate multiple tenants. The project will be developed in two phases. Phase I groundbreaking is planned for November 2021, with completion and delivery anticipated by yearend 2022. This phase will include the first five buildings, totaling approximately 2.5MSF.
CapRock West 202 Logistics is located within the southeast quadrant of the I-10 Freeway and Loop 202, at the NEC of North 59th Avenue and West Van Buren Street. The project offers direct freeway access and is approximately seven miles to Downtown Phoenix, 12 miles to Phoenix Sky Harbor International Airport. It is within a 45-minute drive to most of the Phoenix MSA.
Phoenix’s geographic position, within a single-day’s drive to primary consumer markets and logistics hubs in Southern California, Dallas, Denver and Salt Lake City, has led it to become a critical node in the North American supply chain. Phoenix’s industrial market set a record of 12MSF in net absorption in the first half of 2021, after experiencing its highest level of absorption in history of 13MSF in all of 2020, according to Cushman & Wakefield.
Don MacWilliam and Payson MacWilliam of Colliers International represented CapRock Partners in the CapRock West 202 Logistics land transaction and will oversee the project’s leasing. CapRock West 202 Logistics’ development partners include CCA Architects and civil engineer Kimley Horn.
CapRock’s recent development portfolio includes approximately 16MSF of Class A logistics facilities across Arizona, Nevada and California that the company recently completed, is currently building or is about to commence. Inclusive of the CapRock West 202 Logistics development, CapRock plans to be under construction on more than five individual 1MSF industrial buildings in 2021 and 2022.
Beyond ground-up development, CapRock is actively acquiring middle market, value-add industrial assets, typically between $20M to $50M per acquisition. The firm recently announced the final close of its oversubscribed CapRock Partners Industrial Value-Add Fund III and is looking to acquire more than $1B of industrial assets for the value-add vehicle. (Source)