The Phoenix industrial real estate market is off to an active start in 2021. Increasing commercial interest in the area seems to be driving demand with little signs of slowing down. As California companies continue to seek properties in and around Maricopa County, some communities to the west of Phoenix are seeing an increase in commercial real estate activity. For instance, recently, to the west of Phoenix and east of Avondale, the City of Tolleson, Arizona, has been attracting industrial investment attention. Here is more on the new industrial growth in Tolleson.
Stos Partners Acquired an Industrial Asset in Tolleson
According to a recent report, the San Diego-based real estate management and investment firm Stos Partners acquired its first Metro Phoenix property in Tolleson with the purchasing of a 227,000 square-foot, single-tenant industrial property located at 10300 W. Buckeye. The acquisition took place through an off-market transaction with a selling price of $16.35 million. The multi-stage industrial property was built in 2005 and 2016 and features a variety of high-quality amenities, including dock high loading doors, 32? clear heights, and multiple other features.
Stos Partners? newly-acquired asset is fully occupied in one of Southwest Phoenix’s fastest-growing and in-demand submarkets. The company?s Executive Vice President Jay Boyle said, ?During escrow, we were able to secure a new lease with the existing tenant for an additional five-year term.? Boyle also commented that ?Our ability to secure the new lease speaks to our strength as an operator, as well as the quality of the market and the building.?
Stos Partners is reportedly ?one of the most active commercial real estate investment and management firms in San Diego County.? CJ Stos, Principal at Stos Partners, said that the company was able to work quickly to arrange to purchase to asset in an all-cash transaction in less than 30 days from the date the deal was submitted to closing. Stos also commented that ?We are extremely nimble and well-capitalized with the ability to move quickly to get deals over the finish line,? and that ?Our ability to close in less than 30 days amidst the challenges of the pandemic is demonstrative of our deep expertise as an owner. This acquisition represents our entrance into the Phoenix Metro market as part of a focused strategy to expand in the region. Stos also indicated that the company has plans to make a number of future acquisitions in the area.
Jason Richards, Partner with Stos Partners, commented that ?Tolleson has quickly emerged as the preferred infill destination for large distribution and manufacturing tenants in the region.? He also said, “This made this a very attractive acquisition as there will continue to be strong demand for the asset over time.”
PepsiCo in Tolleson
Merit Partners has also developed Tolleson Corporate Park in Tolleson and is now accepting tenants. The state-of-the-art distribution facility has free-standing and cross-dock buildings. The industrial property has build to suit space for Sale or Lease, 1.5 Miles from Interstate 10. Merit Partners is also possibly about to enter into a lease in Tolleson with a corporate giant. According to a recent report, soft drink giant PepsiCo may be looking to expand its operations in Tolleson soon.
It was recently reported that the famous drink maker will lease a manufacturing facility that is under development at 75th Avenue and Buckeye Road in Tolleson. PepsiCo already has a presence in the community with a nearby production facility. The site of the expansion will include an e-commerce portion of PepsiCo?s development. According to reports, Merit Partners plans to lease 21 acres for a minimum of five years to the company for e-commerce distribution purposes. The site will be near Estrella Commerce Park. Tolleson Development Services Director Jason Earp said of the location, “For years, it’s been difficult to put any kind of retail there. ? PepsiCo gave me their estimates for about $9 million a year in sales. If you multiply that by five years, that’s $45 million, and 2.5% of that will come to the city of Tolleson.?
TJ Wead, an investment officer for Merit Partners, indicated that the site is anticipated to be finished by the beginning of November 2021. He also expects that PepsiCo will likely be looking to hire new employees for the facility.
Tolleson Mayor Juan Rodriguez commented that ?There?s multiple benefits here, and I think the greatest benefit is that we have a partner that has been a part of Tolleson tradition for a very long time.? City Manager Reyes Medrano commented that the PepsiCo lease “This might be the most active economic development year we’ve ever had.”
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