Cushman & Wakefield: Stonelake Capital acquire Phoenix industrial center
Staff Reports | Digital Free Press
Cushman & Wakefield has advised the seller in the sale of an 82,050-square-foot cold storage distribution facility in Phoenix.
Found at 2434 S. 10th St., the property is known as the Sky Harbor Industrial Center. The property was 100% leased to Vistar, a national wholesale distributor in numerous industry segments, according to a press release.
Dallas-based Stonelake Capital Partners acquired the property from Stos Partners for $15.1 million, the release states.
Executive Managing Director Phil Haenel of Cushman & Wakefield’s Private Capital team in Phoenix, in collaboration with Executive Vice Chairman Will Strong, Associate Molly Hunt, and Senior Financial Analyst Callahan Conway of Cushman & Wakefield’s National Industrial Advisory Group – Mountain West team represented the seller in the transaction.
David Wilson and Carter Wilson with DAUM Commercial provided market advisory.
“This is a rare cold storage distribution facility in a desirable Sky Harbor Airport submarket,” Mr. Haenel said in a prepared statement. “Growth of online grocery sales has pushed demand for cold-storage warehouses, and there is extremely limited availability of Class A freezer/cooler space for immediate lease up in Metro Phoenix. Vacancy of cold storage space is consistently low in larger cities and many available facilities are either outdated functionally or have surpassed their useful life.”
Sky Harbor Industrial Center is situated on three acres and consists of approximately 29,500 square feet of air-conditioned warehouse space, 28,250 square feet of evap cooled warehouse space, 15,500 square feet of freezer space, 6,300 square feet of office space plus additional cooler and warehouse/office space.
The property offers immediate access to I-10, I-17, U.S. Route 60, and Loop 202, and is also less than 10 minutes from Phoenix Sky Harbor International Airport. Its Central Phoenix location also provides excellent access to downtown Phoenix.
“Occupying a prominent infill location and close to major transportation arteries, demand drivers, and residential rooftops, this functional single-tenant asset provided a unique opportunity to capitalize on a variety of demand drivers within the rapidly growing Phoenix MSA,” added Mr. Strong.
CJ Stos, principal of Stos Partners, echoed a similar sentiment.
“This is a strong performing cold storage asset in a thriving Phoenix market. Supported by a quality tenant, the property has also provided great value. We are pleased to have worked with Cushman & Wakefield and Stonelake Partners in the sale and look forward to additional opportunities in the industrial sector which remains our primary focus.”
According to Cushman & Wakefield’s latest Q3-2022 market report, direct industrial vacancy in the overall Phoenix market was a healthy 4.2% and was even tighter at just 2.9% in the Sky Harbor Airport submarket. Phoenix has achieved nearly 4.4 million square feet of occupancy growth year-to-date 2022.