GOODYEAR, AZ-Sub-Zero Wolf LLC will invest $65 million to relocate and expand its Valley manufacturing operations.
The Madison, WI-based company, which produces high-end kitchen appliances, bought a 440,168-square-foot vacant warehouse/distribution building for $12.5 million. It will spend another $52 million to build out and equip the building, which is meant to handle production of a new line of refrigeration the company intends to introduce.
Sub-Zero Wolf plans to add as many as 100 new jobs with the move. Experts have estimated the company’s move to Goodyear could result in an economic impact for the city of $214 million over a seven-year period.
Located at 4295 N. Cotton Lane, the building is part of Palm Valley 303, a 1,600-acre master planned business park situated north of the I-10 and Loop 303 interchange. Sunbelt Holdings purchased the completed building in July 2010 as part of its acquisition of SunCor Development Co.’s real estate assets. The Phoenix-based company had planned to sell the industrial building to an owner-user.
“This is the largest single-tenant user purchase in Phoenix so far this year,” says John Pompay, a first vice president with Cassidy Turley BRE Commercial. He and Tony Lydon, who was formerly with Cassidy Turley BRE Commercial and is now with Jones Lang LaSalle, represented Sub-Zero Wolf. Joe Porter, Pat Feeney, Dan Calihan and Rusty Kennedy represented Sunbelt Holdings.
Currently, Sub-Zero Wolf operates a 165,000-square-foot facility in Phoenix that produces its integrated line of refrigeration, along with wine storage and undercounter refrigeration. The company currently employs 288 people and will move those jobs to the new facility when it opens.
Pompay tells GlobeSt. that several buildings in the Valley would have accommodated Sub-Zero Wolf if the company had wanted to lease space. Since it wanted to buy, only four buildings met the company’s needs.
“Sub-Zero Wolf liked the location of this building, which is right in the path of growth for the Southwest Valley,” Pompay notes. “They also liked the depth of the labor pool and the demographics.”
Beyond that, the building’s close proximity to a substation allows Sub-Zero Wolf to pull additional power and its eligibility for Foreign Trade Zone status – scheduled to be granted to Palm Valley 303 later this year – will allow it to generate significant savings for its imported manufacturing components.
Of equal importance, the city of Goodyear pledged a $750,000 in economic support to Sub-Zero Wolf based on job creation and job training.
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