By Roland Murphy for AZBEX
Another 3.8MSF of industrial development could soon make its way into the Mesa pipeline thanks to a proposal currently under review.
Developer Shopoff Realty Investments, LP is requesting a rezoning, design and site plan review, and annexation for The Block on Elliot – a three-phase, 273-acre business park with eight building sets at the SWC of Elliot and Sossaman roads. According to the project narrative, “The phasing, mix of building options, and build-to-suit configurations are designed to make this site fit for the variety of national corporations and employment uses that Mesa desires to locate and retain in the Gateway district.”
SRI owns all the land under consideration, and the proposed annexation area is in a county island adjacent to Mesa’s jurisdiction to the south. The narrative states all the necessary infrastructure is currently in place to meet the development’s needs, with no significant changes being required. Right-of-way improvements would be installed “consistent with applicable roadway standards.”
The application for the former dairy farm site seeks a rezoning from Agricultural to Light Industrial/Planned Area Development. Surrounding uses are largely vacant and designated Employment/Mixed Use under the General Plan Land Use.
The narrative goes on to say the site is classified as the Inner Loop district in the Mesa Gateway Strategic Development Plan and is compatible with a range of uses, including “a mix of building types and industrial and employment uses, with an emphasis on technology, employment and clubhouse, retail uses that offer recreational and commercial services as well as different kinds of business growth.”
SRI anticipates a 60-40 mix of light industrial/manufacturing as the primary use, with warehouse/distribution as the secondary, based on current market conditions. The proposal includes data from the economic analysis firm Elliot D. Pollack & Company examining three types of development options for the site: Light Manufacturing, Warehouse Distribution or a 60/40 Mix. Construction costs for each type are estimated at $480M, $425M or $460M, respectively. Post-construction impacts are projected at $2.2B, $860M or $1.7B.
The Development Plan
The site is divided into eight parcels, with multiple building sets planned for each. The parcel area breakdown is:
- Parcel 1: 9.52 acres;
- Parcel 2: 13.06 acres;
- Parcel 3: 25.68 acres;
- Parcel 4: 20.48 acres;
- Parcel 5: 36.18 acres;
- Parcel 6: 50.30 acres;
- Parcel 7: 29.43 acres, and
- Parcel 8: 82.13 acres, giving a net acreage of 266.77.
The development will be split into three phases. The preliminary phasing diagram shows Phase I consisting of five buildings totaling 725.8KSF. A potential sixth building of 167.6KSF is included in Phase I.
Phase II is planned for five industrial buildings totaling 898.9KSF, as well as a three-building café/club area of 27.4KSF.
Phase III shows five primary buildings totaling 1.45MSF. Another three buildings totaling nearly 805KSF could be included.
In comments on the pre-submittal materials, City staff noted a development agreement will be required, given the overall amount of development planned for the site. The developer responded that an agreement will be coordinated as needed.
The State of Mesa Industrial
PUT 0922 Mesa Industrial Snapshot.xlsx SOMEWHERE IN HERE
A DATABEX review of Industrial projects in Mesa since the database’s launch in 2016 captures the market’s explosive growth over the past few years. Leaving out canceled projects, projects on hold and master plans (but including the individual projects within them) shows a total collection of 90 different developments ranging from Design through Completion.
In that time developers have delivered 32 industrial developments – mostly in the Warehouse/Manufacturing subcategory – totaling more than 8MSF with a total valuation of more than $3B. Interestingly, the current group of projects listed as Under Construction shows 26 developments with a total of 18.9MSF and construction values of $3.475B.
Pundits and analysts may quibble over the risks of a potential slowing in the industrial sector, but given Mesa’s pace of development in recent years, and the fact that there are 32 more projects ranging from Design to Pre-construction and totaling another 16.7MSF worth $1.7B in construction costs in the pipeline, it seems safe to say the market’s outlook for the near- and mid-terms remains prosperous and encouraging.
