LPC Desert West Breaks Records With $186M Sale in Phoenix

LPC Desert West has broken a new record with its latest sale. The developer has sold the first phase of Park 303, a 210-acre development with the ability to accommodate 4 million square feet of industrial space in Glendale, Arizona, a suburb of Phoenix. BentallGreenOak purchased the property for $186 million, highest single-building industrial sale price in Arizona history.

“Park 303 checks all of the boxes for a class-A industrial development—just taken to the next level,” John Orsak, VP at LPC Desert West, tells GlobeSt.com. “Direct freeway frontage and service by two freeway interchanges, premier interior site accessibility via private loop roads, and modern advantages like 40-foot clear height and a very unique outdoor employee amenity space. The building also uses clerestory windows as opposed to skylights, which gives employees blue sky views and makes it easy for a tenant to install full-building air conditioning.” The latter is unique because energy codes prohibit air conditioning with skylights.

Phase 1 on Park 303 is a 1.25 million-square-foot property. It was developed as a two-building facility with the ability to combine the two buildings into a larger building that can accommodate a single user. “The project’s flexibility might be its winning feature, allowing us to quickly combine two buildings into one when a major user requirement presented itself,” says Orsak. The property is already fully leased to a “Fortune 1 retailer,” according to the developer.

With the in-place lease and the quality of the property, it is no surprise that there was tremendous interest in the sale. “We had significant interest from very sophisticated institutional investors looking at this property and they came from all over,” says Orsak. “In the end, the buyer was also a notable institutional entity.” Ed Lampitt, Mike Haenel, Andy Markham and Phil Haenel of Cushman and Wakefield represented Park 303’s Phase I tenant in the lease transaction, while Will Strong of Cushman and Wakefield represented LPC in the investment sale.

Now, LPC West will turn its attention to the development of phases two and three. Combined, these two phases will total 2.5 million square feet over three buildings. The developer expects to secure a similar quality tenant and sale transaction on those deals. “Phoenix is considered one of the best user and investor markets in the country,” says Orsak. “User demand is strong and we expect it will remain strong for some time, which has us very bullish on new development.”