Scannell Plans 2M SF Mixed-Use Business Park in Phoenix

Scannell Properties will build a 2M SF mixed-use business park on a 166-acre site adjacent to the Phoenix-Mesa Gateway Airport.

The project, known as Mesa Gateway 2, will include industrial and office space as well as future build-to-suit buildings and retail space. It was approved this month by the Mesa City Council.

The business park will be located on the south side of Warner Road between Loop 2020 and Ellsworth Road, within two miles of the airport.

Phase 1 of the project will include nine buildings to be constructed on 123 acres of the site encompassing 1.8M SF of industrial space and about 100K SF of office space. The industrial buildings on the campus will range in size from 73K SF to 555K SF.

The industrial buildings at Mesa Gateway 2 have truck dock areas and outdoor storage space on the back and sides of the buildings. Plans include three build-to-suit sites and several smaller pads for retail that are listed as future developments.

Scannell, which specializes in build-to-suit projects, acquired the site in July 2021 for $36M from ViaWest Group, which was representing BD218 LLC, a family trust, in one of the largest land sales in Greater Phoenix in recent years.

Scannell also is in the midst of developing Dobbins Industrial and Tech Park, a 240-acre site on the west side of the Loop 202 South Mountain freeway extension. The mixed-use park will include light industrial, office, technology and manufacturing space encompassing 3.5M SF.

Scannell entered the Phoenix market in July 2020 with the development of a 750K SF distribution facility in Buckeye for retailer Five Below.

Scannell developed a spec industrial project in nearby Glendale last year on a 50-acre site in the Loop 303 Corridor; the 388K SF e-commerce warehouse was built by Clayco.

With warehouses in Southern California filled to the brim this year and few available sites in SoCal suitable for developing large industrial projects, new development has surged in the Greater Phoenix area in general, especially in Mesa.

In January, a partnership of Wharton Industrial and Madison Ventures Plus secured $224 million in acquisition and construction financing for a 1.5-million-square-foot, master-planned industrial park in Mesa, Globe St. reported.

The companies obtained the loan from MSD Partners L.P., which was formed by the partners of MSD Capital L.P., the family investment office for Dell Technologies’ founder and CEO, Michael Dell.

Ground was broken in Q2 2022 for the class A industrial park, known as The HUB @ 202. The park encompasses 11 buildings. The 101-acres site is located in Mesa, AZ’s Southeast Valley submarket.