(Read more on the industrial market.)
PHOENIX-A local developer has acquired 28.5 acres in the Deer Valley submarket for $16.15 million. Preliminary plans call for a mixed-use development that doesn't have a name as yet.
Namwest LLC bought the acreage at 19th Avenue and Happy Valley Road from Las Vegas investor Garland Talbot. Darren Tappen, associate vice president in Colliers International's Phoenix office, says the project could break ground later this year or early next year, but the project size is still being determined. The site will contain industrial and office projects, with 10 acres on the corner dedicated to retail.
Tappen, who brokered the transaction with Colliers senior vice president Bob Lundstedt, says Namwest plans to develop some acreage and flip the remainder to users. "They'll sell the land parcels for about $20 per sf, but are still deciding what to build on and what to sell," Tappen tells GlobeSt.com. The Colliers team is handling land sales and working with Namwest to prelease the development.
According to Grubb & Ellis Co.'s latest market reports the average office rate is quoted at $23.05 per sf, full service in the submarket. Retail is getting more than $17.50 per sf, net. Industrial space's average quote is running 77 cents per sf in the metro based on third quarter stats from Transwestern's research affiliate, Delta Associates of Washington, DC.
The North Phoenix site is close to the 575-acre USAA office campus. Additionally, WL Gore & Associates leases temporary space at 19th Avenue and Happy Valley Road while building a nearby 40-acre campus. Given the business and residential growth, Tappen says there's more than enough demand for Namwest's mixed-use development. "It's an area with a growing population and great employment generators and the project will do well," he predicts.
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