Star Partners Deepens Investment in Phoenix Metro with Acquisition of 82,500-SF Industrial and Cold Storage Asset

SOLD: 82,500 square-foot industrial warehouse featuring cold storage at 2434 South 10^th Street in the Southwest airport submarket of Phoenix, AZ.

David Wilson

PHOENIX, AZ –

 Stos Partners, one of the most active commercial real estate investment and management firms in Southern California, has expanded its presence in the Phoenix Metro area with the acquisition of an 82,500 square-foot industrial warehouse featuring cold storage in the Southwest airport submarket of Phoenix, Arizona.

The property is located at 2434 South 10^th Street in Phoenix, Arizona. David Wilson at DAUM Commercial Real Estate Services represented both the buyer and seller.

The property was acquired off market in a joint venture with a high-net-worth family office for $11.1 million, according to CJ Stos, Principal at Stos Partners, who explains that the firm is continuously looking for opportunities to grow its portfolio of value-add and core plus industrial assets in the Phoenix area. 

Tanner Jansen

“At the beginning of this year, we acquired our first property in the Phoenix Metro area as part of a focused strategy to expand in the region as demand for warehouse space increases,” says Stos, who notes that industrial vacancy rates throughout the region are compressing while supply increases.

“This new purchase will allow us to capitalize on organic market growth, as well as presents the opportunity for further upside through strategic renovations down the line.”

The demand for facilities including cold storage has increased significantly over the last year and a half, accelerated by the COVID-19 pandemic trends including last-mile grocery delivery and vaccine storage needs. Construction in the sector is expected to grow to $18.6 billion in 2027, according to Jay Boyle, Executive Vice President at Stos Partners.

CJ Stos

He adds: “This facility currently has a strong credit tenant in place that specializes in food delivery services, providing stable in-place cash flow. The asset is also well-positioned to benefit over the next several years from this growth in demand.”

­According to Tanner Jansen, Vice President of Acquisitions at Stos Partners, the asset presents the opportunity to bring rents up to market through the firm’s proven value-add strategy.

“In the near future, we’ll implement minor capital improvements including mechanical system upgrades, parking lot repaving, and updated landscaping, in order to best accommodate the facility’s current uses,” Jansen explains.

Jay Boyle,

“Looking ahead, we were also attracted to the long-term flexibility this property offers to execute heavier renovations and re-tenant the asset, or even reposition it as a fully dry storage facility, based on market demand.”

 

Contact:

Katie Haga / Elisabeth Manville

Brower Group

(949) 438-6262

khaga@brower-group.com