June 14, 2019 – DAUM Commercial Real Estate Services has completed the sale of a 123,754 square-foot industrial building in the Southwest submarket of Phoenix, Arizona on behalf of both the buyer, Exeter Property Group, and seller, David Turner International, LLC.
The buyer will benefit from the property’s long-term, in-place lease to a food processing and manufacturing tenant, as well as its location within the Southwest Valley submarket, which has seen sustained rent growth over the past several years, notes Trevor McKendry, a Vice President at DAUM Commercial, who completed the sale alongside DAUM First Vice President Chris Rogers.
“The industrial sector in Phoenix has experienced strong investor capital interest as the city continues to see a tremendous amount of economic, employment, and population growth,” says McKendry. “Through our long-standing connections and focus in the metro-Phoenix industrial market, we were able to secure the deal with Exeter, whose Phoenix industrial presence enabled them to quickly recognize the opportunity to acquire a property of this size off market.”
The Phoenix industrial market experienced a decrease in vacancy to 7.1 percent in Quarter 1, with an uptick in new construction deliveries, and very strong activity amongst all product and tenant types, notes Rogers, citing a recent DAUM report.
This asset benefits from a prime location that offers convenient access to major freeways including I-10, I-17, U.S. 60, 101 FWY, and the South Mountain 202, which is currently under construction.
Rogers adds: “These route options ultimately provide shorter drive times to other major markets, and are considered a demand driver for the area. The property also benefits from features that are all synonymous with the functionalities of today’s user needs.”
The asset itself is situated on a fully paved 7.2-acre site and includes an air-conditioned warehouse, six dock-high and two grade-level doors, ample parking, and a clear height of 24 feet.
The property was purchased for $8.16 million. The building is located at 4502 W. Monterosa Street in Phoenix, Arizona.