In July of this year, Phoenix-based Merit Partners acquired 83 acres of land with plans to build a new 9,000 square-foot, Class A+ industrial park on a vacant site. The seven-building built-to-suit speculation project is to be named the Merit Sky Harbor Industrial Park. Merit Partners’ future master-planned industrial park is to be located at 7th Avenue and Elwood Street in Phoenix’s Sky Harbor Airport submarket. At the time of the transaction, it was one of the most significant land deals to have taken place since the start of the coronavirus pandemic. Now, it looks as if the project is getting underway. Here is more on Merit Partner’s $111 Million Development in southern Phoenix.
In November, community leaders gathered at the future Merit Sky Harbor Industrial Park site to celebrate plans for a future employment center. The event was a neighborhood gathering where Merit Partners could answer questions about the project. According to a recent report, the new employment center will replace the old CEMEX cement plant. The developer started clean-up and remediation efforts of the former cement manufacturing site, which has been vacant for approximately 15 to 20 years. The $11 million renovation effort is a welcome replacement for the long-dormant property.
These efforts are the beginning of Merit Partner’s plans for several buildings at the former CEMEX location. In addition to these clean-up efforts, Merit Partners is also reportedly investing $100 million to develop a new employment center that will create as many as 1000 new jobs.
The clean-up project is within an Opportunity Zone. These are areas that have been identified and needing revitalizations, economic growth, and investment. Opportunity Zones are real estate investment options that were created through the Tax Cuts and Jobs Act. They allow capital gains taxes to be deferred when proceeds from a property, business, or stock, are invested in operating companies within designed opportunity zones.
Kevin Czerwinski, CEO of Merit Partners, commented that “This is a particular part of the Valley. It deserves this economic and environmental revitalization. Merit Partners is proud to lead the way as we help restore the riverbed while providing local jobs.” Czerwinski also commented that Merit Partners “looks forward to the completion of this project and the opportunities it will provide, and we eagerly welcome input from our new neighbors.”
The remediation project is expected to take six to seven more months to complete. Merit Partners plans to develop seven industrial buildings totaling 896,400 square feet. The facilities will be equipped for last-mile distribution and similar uses.
Merit Partners also recently purchased 614 acres in Glendale for another industrial park, Camelback 303.
Laura B. Bramnick is an Arizona real estate attorney with the knowledge and experience you need to protect your interests during every stage of your commercial real estate matter. If you are seeking an exceptional, client-driven real estate lawyer in Scottsdale, Phoenix, Sedona, and throughout the State of Arizona, contact Laura B. Bramnick to schedule your consultation.