Cushman & Wakefield brokers industrial purchase for Panattoni
Staff Reports | Digital Free Press
A real estate fund advised by Panattoni has planted its flag in Phoenix.
Cushman & Wakefield officials say the fund advised by Panattoni is set to construct an industrial/distribution building totaling 274,000 square feet in Surprise.
Coined ‘Surprise Point,’ the new project will consist of a state-of-the-art industrial building at the southeast corner of Soledad Street and North 137th Avenue in Phoenix’s expanding West Valley area, according to press release.
Panattoni acquired the 16.24-acre land site in January 2023 for $8.5 million, the release states.
“Phoenix’s West Valley has captured significant interest from industrial users who want to be located near the Loop 303. It also serves as a secondary location for Southwest Phoenix/North Phoenix and Deer Valley industrial users,” said Will Strong, executive VP at Cushman & Wakefield.
“The site sits in the greater Master Plan of Surprise Pointe; comprised of 100 acres planned for commerce, industrial, and office. The surrounding neighbors are blossoming with industrial users.”
Executive Managing Director Phil Haenel, Senior Director Kirk Kuller, Associate Molly Hunt, and Senior Financial Analyst Callahan Conway, with support from Senior Marketing Lead Stephanie Saccente, represented the seller, Atlas Capital Partners, in the sale of the land.
Panattoni Development’s local office is headed by long-time Greater Phoenix development professional John DiVall, who will oversee development of the new Class A project.
Plans call for the construction of a 274,000-square-foot rear-loaded building with a 36’ clear height, 200’ truck courts, 60’ speed bays, ESFR sprinklers, ample power, and the capability of being rail-served by BNSF Railway, one of the largest freight railroad networks in North America, the release states.
According to Cushman & Wakefield’s Q4-2022 market report, direct industrial vacancy in the overall Phoenix market was 4.4% with the southwest Valley submarket, where the property is located, at 4.6%. The Phoenix market achieved a robust nearly 21.7 million square feet of occupancy growth in 2022, with the Southwest Valley submarket accounting for the lion’s share with 15.8 MSF of growth.