CapRock Partners, a leading industrial investor, developer and asset manager in the western United States, today announced the start of development of CapRock West 202 Logistics, the largest speculative industrial real estate project in the history of the city of Phoenix. CapRock is converting one of the largest remaining infill land locations in the Southwest Phoenix submarket into a state-of-the-art, eight-building, Class A industrial warehouse complex covering 3.4 million square feet. The project will be easily accessible to key logistics transportation routes and will bring much-needed modern storage space to the Phoenix Metropolitan Statistical Area (MSA) as it continues to experience robust population and employment growth. CapRock has secured the land for the development of the project through a long-term lease. Terms of the transaction will not be disclosed. “Phoenix is now the fifth largest community in the United States and also the fastest growing city. With much of the Valley’s new industrial products being shipped to the outer sub-markets such as the Northwest, CapRock Partners is proud to bring CapRock West 202 Logistics to central Phoenix, at an ideal infill location near downtown and along an important one Transportation corridors, ”said Bob O’Neill, Senior Vice President, Acquisitions at CapRock Partners. “CapRock West 202 Logistics will surpass all other large industrial projects within the Phoenix city limits by more than 1 million square feet. Unsurpassed in size, location and accessibility, the project will set a new standard for warehouse development in the city of Phoenix and attract world leaders in sales, manufacturing and logistics that need contemporary space to accommodate the region’s remarkable growth ALSO READ: Metro Phoenix Industrial Market Breaks Record For Construction CapRock West 202 Logistics’ eight buildings will be 228,000 to 1,065,000 square feet with a clearance between 32 and 40 feet. All buildings will have dock-high and ground-level loading with secured truck concrete places. Each of the buildings is designed at different depths and can be divided to accommodate several tenants. The project is being developed in two phases. The groundbreaking of phase I is planned for November 2021, completion and delivery is expected by the end of 2022. This phase includes the first five buildings for a total of approximately 2.5 million square feet. CapRock West 202 Logistics is located in the southeast quadrant of I-10 Freeway and Loop 202, on the northeast corner of North 59th Avenue and West Van Buren Street. The project has direct freeway access and is seven miles from downtown Phoenix and 12 miles from the Phoenix Sky Harbor International Airport. Most of the Phoenix MSA are within 45 minutes’ drive. The project is surrounded by institutional owners, and neighboring tenants include Amazon, Kroger, CVS, Target, Home Depot, Costco, and many others notable. In 2020, Maricopa County added 86,820 new residents, more than any other county in the country, according to the US Census Bureau. Aided by this rapid population growth, strong economic fundamentals, a business-friendly environment, a temperate climate, and the lack of available products in California’s key markets, Phoenix has become a prime destination for Fortune 1000 companies looking to increase inventory and distribution capabilities . Phoenix’s geographic location within a one-day drive to major hypermarkets and logistics centers in Southern California, Dallas, Denver and Salt Lake City has made it a key hub in the North American supply chain. Phoenix’s industrial market set a record 12 million square feet of net absorption in the first half of 2021, after posting the highest degree of absorption in history for all of 2020 at 13 million square feet, according to Cushman & Wakefield. “CapRock West 202 Logistics goes online as Phoenix is in the spotlight as one of the most popular cities in the US from a lifestyle, employment and logistics perspective. Both businesses and individuals continue to move to the Valley in record numbers, ”said Jon Pharris, Co-Founder and President of CapRock Partners. “CapRock West 202 Logistics is an extraordinary development for Phoenix as the city becomes an even more influential and dynamic North American economic center. CapRock is committed to providing state-of-the-art large-scale warehouse solutions in key western markets while companies quickly adapt their operations to the demands of today’s evolving economy. “” CapRock West 202 Logistics is an important project for CapRock Partners as one of the fastest growing industrial real estate company in the west, ”added Pharris. “Since 2020, CapRock has added approximately 3.7 million square feet of industrial products to its investment, development and management portfolio in the Phoenix area, and CapRock West 202 Logistics brings the company’s total pipeline in the Valley to nearly 7.5 million square feet. Our team is grateful for the opportunity to develop this unique and impactful project and to contribute to the positive growth of Phoenix. ”Don MacWilliam and Payson MacWilliam from Colliers International represented CapRock Partners in the property transaction for CapRock West 202 Logistics and will lease the project monitor. CapRock West 202 Logistics’ development partners include CCA Architects and civil engineer Kimley Horn. CapRock’s most recent development portfolio includes approximately 16 million square feet of Class A logistics facilities in Arizona, Nevada and California that the company recently completed, is currently building, or is about to begin. Including the development of CapRock West 202 Logistics, CapRock plans to be under construction on more than five individual industrial buildings covering an area of one million square meters in 2021 and 2022. In addition to under development, CapRock actively acquires mid-market, value-added industrial assets, typically between $ 20 million and $ 50 million per acquisition. The company recently announced final closing of its oversubscribed CapRock Partners Industrial Value-Add Fund III and intends to acquire more than $ 1 billion in industrial assets for the value-add vehicle.
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