First Industrial Realty Trust, a Chicago-based real estate investment and development firm, has purchased the site of the former East High School, near 48th Street and the Loop 202 in Phoenix, for $7.9 million. First Industrial plans to begin construction this spring on the first phase of the Red Mountain Freeway Center, three flex industrial buildings totaling 256,500 sf. The buildings are expected to be ready for occupancy by early 2002.

The developer plans to build a fourth building on the 30-acre site in the second phase, a 110,400-sf flex industrial building.

East High School closed in the early 1980s due to declining enrollment.

Industrial space has been the strongest segment of the market in the past year. In 2000, net absorption reached 10.71 million sf, up from 7 million sf the prior year, according to a survey by CB Richard Ellis. The strong demand pushed the vacancy rate down from 8.06% to 7.38% by the start of 2001.

The Phoenix office of CB Richard Ellis, with brokers Mark Krison, Bob Crum and David Carder, represented First Industrial in the purchase of the land.