Stos Partners acquires Phoenix industrial building for $10.9M
Staff Reports | Digital Free Press
Stos Partners has acquired a 94,186-square-foot industrial building in Phoenix.
The $10.9 million transaction, which closed at the end of 2022, represents Stos’ fourth deal in Phoenix last year as the firm furthers its presence in the market, representatives of the brand report.
“Our company continues to seek industrial acquisition opportunities in the Phoenix market as we have identified its tremendous potential, which led to our repeated investment in the region during 2022,” CJ Stos, principal of Stos Partners, said in a prepared statement.
“With year-over-year unemployment decreasing from 4.1% to 2.8% in Q3 2022 and the number of households rising by 2.6% to 1.9 million during that time, according to Cushman & Wakefield, Phoenix’s economy is showing signs of ongoing strength and stability.”
The Phoenix industrial market is also exhibiting positive fundamentals, Stos representatives say, with three of the four product types experiencing positive absorption and the construction pipeline remaining at its highest levels in the region’s history, nearly leading the nation. Asking rents are rising, with a 12-month forecast of continued increases, which bodes well for industrial owners, according to Morgan Hill, Vice President of Acquisitions for Stos Partners.
“As an industry leader focused primarily on industrial acquisitions, Stos has become adept at identifying markets positioned for future growth,” Mr. Hill said. “Our firm sees many positive performance indicators in Phoenix, which has fueled our expertise in this market and drives our interest in additional acquisitions in the region.”
The property is at 1002 S. 54th Ave. in Phoenix.
Built in 1992, the subject property, which is atop 4.2 acres in southwest Phoenix, features 83,889 square feet of warehouse and distribution space and approximately 7,000 square feet of office space. The building offers 25 feet of warehouse clearance, a brand-new roof, 17 dock-high doors, and two drive-in ground-ledvel doors. Additional amenities include HVAC in the warehouse and an EVAP cooling system throughout the warehouse area, both powered by more than 2,500 amps of 277/440-volt power.
“In addition to utilizing our well-tested capital-improvement program, the building’s features, location, and size will be well received by the current strong demand in the southwest Phoenix market,” says Jason Richards, partner at Stos Partners.
Stos utilized its longstanding relationships with local brokers in the Phoenix metro area to source the property, according to Jay Boyle, executive vice president of Stos Partners.
“Our company has a long history of forming strong partnerships with brokers in the markets where we invest and capitalizing on those relationships to identify assets that align well with our business objectives,” comments Mr. Boyle.
Anna Josephson and Bo Mills of KBC Advisors represented Stos in the transaction. The property was sold by a national window manufacturer and distributor that owned and occupied the now-vacant building.
Phil Haenel, Mike Haenel and Andy Markham of Cushman & Wakefield are marketing the asset for lease on behalf of Stos.
