PHOENIX—After approximately two years without a Phoenix property in its portfolio, Westcore Properties was attracted back to the market due to its growing economy, declining vacancy rates and rising rents, particularly in the multi-tenant industrial sector. After this short hiatus, it recently added a 170,625-square-foot industrial property located at 125 North 67th Ave. to its portfolio. Westcore purchased the property, originally built in 2001, from an independent Canadian investor for $10.2 million.
Hack Adams, senior vice president at Westcore Properties, tells GlobeSt.com: "We are very focused on expanding our industrial asset base with quality investments like 67th Avenue, and we feel Phoenix's diverse economic base, as well as the resurgence of the multi-tenant industrial market provided us an exciting opportunity to lay the foundation for building a cohesive Phoenix industrial portfolio."
Goodman Distribution currently occupies approximately 50,000 square feet of the 67th Avenue property and Omni Workspace occupies approximately 48,000 square feet. Westcore will begin work in late January on the building's exterior and the 70,000 square feet of space coming available in the first quarter of 2016.
Bo Mills and Mark Detmer from JLL's industrial capital markets western United States team represented Westcore Properties in the transaction.
"Phoenix has a truly precise mix of low operating costs, exceptional labor pool and a very strategic location between the ports of Southern California and the manufacturing activity happening in Mexico," said Mills. "The increasing job growth, lack of new development and housing recovery make Phoenix an ideal location for industrial investment as vacancy rates drop and lease rates climb."
The 67th Avenue property is located just west of the airport and in close proximity to Interstate-10. Improvements will include a new exterior paint scheme and other cosmetic façade upgrades, energy-efficient lighting, new carpeting and various other interior upgrades.
"This property appealed to us because of its quality tenant base but also the opportunity to upgrade the exterior and one of the suites coming vacant in the first quarter of this year," said Adams. "We also recognize the trend of industrial businesses in greater Phoenix showing increasing signs of strength, particularly those occupying space between 30,000 and 100,000 square feet."
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
