Class A industrial buildings brokered under advisement of Cushman & Wakefield
Staff Reports | Digital Free Press
Cushman & Wakefield has advised seller ViaWest Group and their institutional Joint Venture Partners in the dispositional sale of Chandler Crossroads I & II, a Class A industrial project totaling 216,322 square feet in Chandler.
Developed in 2016 and 2022, respectively, the southeast Valley portfolio consists of two buildings found at 2800 & 2900 S. Gilbert Road, according to a press release.
At time of escrow, the project was 78% leased, but the vacancy was filled by time of close. The buildings are now 100% occupied by seven tenants. The property was acquired by an undisclosed investor for $40.15 million, those close to the transaction say.
Executive Vice Chairman Will Strong, Executive Managing Director Phil Haenel, Managing Director Micki Strain, Senior Director Kirk Kuller, Associate Molly Hunt, and Senior Financial Analyst Callahan Conway, with support from Senior Marketing Lead Stephanie Saccente, of the firm’s National Industrial Advisory Group – Mountain West team represented the seller in the transaction.
“Chandler Crossroads I & II is a very appealing Class A investment that is well leased to a diverse tenant roster, with no lease expiration due before Q4 2026,” Mr. Strong said in a prepared statement.
“The property is also strategically located approximately one mile from the Loop 202 freeway and near the Interstate 10. The asset provides a strong opportunity to maintain stable occupancy and cash flow for the long-term, coupled with the potential to fill the remaining vacancy at attractive rents in the current demand cycle.”
Mr. Strong contends the Phoenix metropolitan area is bucking national trends in terms of commercial development projections.
“The Phoenix Metro market continues to thrive as a high-demand industrial market for occupiers and investors/developers,” he said. “The market has continued to experience growth and remain one of the nation’s best performing industrial markets.
According to Cushman & Wakefield’s latest report, Phoenix achieved more than 21.7 million square feet (msf) of overall occupancy growth in 2022, with more than 5.6 msf alone stemming from the Southeast Valley.”
Chandler Crossroads I & II is modern, and boasts a strong tenant roster, functional design, and exceptional location — traits that should help provide a great long-term investment for the buyer, Cushman & Wakefield officials say.
Great buildings and exceptional brokerage teams — Steve Larsen, Chris McClurg, and Ken McQueen — have truly made this project a success,” said Alex Boles, ViaWest Group senior vice president, investment and development.
Chandler Crossroads I (Phase I) consists of a 100,243-sf multi-tenant building completed in 2016 and was 100% leased. Chandler Crossroads II (Phase II) consists of a 116,079-sf multi-tenant building that was recently completed in 2022 and was 100% leased. The buildings feature respective clear heights of 24- and 34-foot, dock-high, truckwell and grade level loading, and heavy parking.
ViaWest has active industrial developments in Phoenix, San Diego, Salt Lake, Las Vegas, and Denver totaling over 5.3 million square feet.
