Lease Leads to Purchase for Supply Chain Provider

XPO Supply Chain Inc. has exercised its option to purchase the building on West Van Buren.

PHOENIX—After leasing a class-A distribution facility in the heart of Phoenix’s Southeast Valley industrial market for three years, global supply chain leader XPO Supply Chain Inc. has opted to purchase the building. The company formerly known as Menlo Worldwide originally occupied the Lincoln Property Company building in 2013, bringing with it a wide variety of Internet fulfillment-related jobs. XPO executed its option to purchase the building located at 7037 W. Van Buren St. for $30.378 million. Lincoln Property Company’s executive vice president David Krumwiede tells GlobeSt.com: “This deal is unique in that XPO was able to buy a building that already had proven to meet and exceed the company’s operational and logistics requirements. That creates nice peace of mind and a win-win for all sides of the transaction.” The building totals 552,330 square feet of class-A warehouse/distribution space. Amenities include 31.5 to 35.5-foot clear height, energy-efficient lighting, evaporative cooling, skylights and sprinklers. The 31.8-acre lot includes the main building, a fenced truck court with a guard shack and parking for 378 cars, 146 trailer stalls, and 100 truck bays with cross dock and front-load configurations. The project is one mile from Interstate 10, served by two full diamond interchanges at 67th and 75th Avenues. It is also 15 minutes from Sky Harbor International Airport . In addition, it is within a foreign trade zone, providing state and local tax incentives, along with on-site job training programs. Corporate neighbors include Target, Amazon and HSN . “Build-to-suits have been hot in Phoenix for years, but big tenant demand for existing space was average. Now, big tenant activity is on the rise, which is tightening the availability of large blocks of space and making assets like 7037 very attractive for tenants and investors alike,” said Krumwiede. Connecticut-based XPO specializes in supply chain management, truckload brokerage and transportation, high-value-add warehousing and distribution, global forwarding and last mile logistics. It employs more than 87,000 workers in 1,440 locations worldwide, serving more than 50,000 customers including Boeing, The Home Depot, IKEA and L’Oreal .