Jackie Day is editorial director of
Real Estate Media's Newsletter Division
PHOENIX-Silagi Development & Management of Thousand Oaks, CA purchased 28.9 acres in the West Valley for industrial development. The company paid nearly $3.9 million for the 7102 W. Roosevelt St. land, where it plans to develop a 600,000-sf industrial building complex, according to reports from Grubb & Ellis/BRE Commercial.
Sam Sorenson of Sorenson & Blake represented the buyer. Phoenix brokers Tony Lydon, Gary Anderson and Steve Mardian, all with Grubb & Ellis/BRE, negotiated for the seller, 7102 W. Roosevelt LLC. Details on the transaction were not available by publication time.
Silagi Development, which also invests in commercial property, has built numerous speculative office, office condominium and industrial properties in California. According to other published reports, owner Moshe Silagi has announced intentions to start building in Arizona, Nevada, Colorado and Utah.
It may not be such a bad time to put up new industrial space. While the complex will join the city's industrial inventory of about 228 million sf, standard rents have increased 4.3% year-over-year since second quarter 2003, from 47 cents per sf on a triple-net basis to 49 cents per sf, according to GVA Daum's Q2 '04 report. Vacancy was 11.6% when the quarter ended. And Phoenix's net absorption of industrial space logged in at 2.1 million sf, the largest gain in more than three years, researchers say. "The market has gained nearly 3.1 million sf of occupied space during the first two quarters of 2004, nearly double the gains for all of 2003," according to the report.
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