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Anna Josephson
|
Phoenix, AZ – Stos
Partners, one of the most active commercial real estate investment
and management firms in Southern California, announces the acquisition of a
94,186 square-foot freestanding industrial building at 1002 South 54th Avenue
in Phoenix, AZ.
The $10.9 million transaction, which
closed at the end of 2022, represents Stos’ fourth deal in Phoenix last year as
the firm furthers its presence in the market.
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| Bo Mills |
Anna Josephson and Bo
Mills of KBC Advisors represented Stos in the
transaction. The property was sold by a national window manufacturer and
distributor that owned and occupied the now-vacant building.
Phil Haenel, Mike
Haenel, and Andy Markham of Cushman & Wakefield are marketing
the asset for lease on behalf of Stos.
“Our company continues to seek industrial
acquisition opportunities in the Phoenix market as we have identified its
tremendous potential, which led to our repeated investment in the region during
2022,” says CJ Stos, Principal of Stos Partners.
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| CJ Stos |
“With year-over-year unemployment decreasing from 4.1% to 2.8% in
Q3 2022 and the number of households rising by 2.6% to 1.9 million during that
time, according to Cushman & Wakefield, Phoenix’s economy is
showing signs of ongoing strength and stability.”
The Phoenix industrial market is
also exhibiting positive fundamentals, with three of the four
product types experiencing positive absorption and the construction pipeline
remaining at its highest levels in the region’s history, nearly leading the
nation.
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| Phil Haenel |
Asking rents are rising, with a 12-month
forecast of continued increases, which bodes well for industrial owners, notes Morgan
Hill, Vice President of Acquisitions for Stos Partners.
“As an industry leader focused primarily
on industrial acquisitions, Stos has become adept at identifying markets
positioned for future growth,” says Hill.
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| Mike Haenel |
“Our firm sees many positive performance
indicators in Phoenix, which has fueled our expertise in this market and drives
our interest in additional acquisitions in the region.”
Built in 1992, the subject property
features 83,889 square feet of warehouse and distribution space and approximately
7,000 square feet of office space.
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| Andy Markham |
Situated on 4.20 acres in the Southwest Phoenix submarket, the
asset is ideally located within a 20-minute drive of all parts of the Phoenix
area.
The building offers 25 feet of warehouse
clearance, a brand-new roof, 17 dock-high doors, and two drive-in ground-level
doors.
Additional amenities include HVAC in the
warehouse and an EVAP cooling system throughout the warehouse area, both
powered by more than 2,500 amps of 277/440-volt power.
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| Morgan Hill |
Stos is implementing a variety of upgrades
to prepare the space for lease, including parking lot and yard repair and
resurfacing; exterior and interior painting, landscape, and window washing;
warehouse cleanup including white scrim installation; HVAC repair as needed;
dock-door repair and replacement; and speculative office reconstruction and
enhancement.
“In addition to utilizing our well-tested
capital-improvement program, the building’s features, location, and size will
be well received by the current strong demand in the Southwest Phoenix market,”
says Jason Richards, Partner at Stos Partners.
Stos utilized its longstanding
relationships with local brokers in the Phoenix metro area to source the
property, according to Jay Boyle, Executive Vice President of Stos
Partners.
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| Jason Richards |
“Our company has a long history of forming
strong partnerships with brokers in the markets where we invest and
capitalizing on those relationships to identify assets that align well with our
business objectives,” comments Boyle.
CONTACTS:
Arleeny Escarcega / Katie Haga
The Smart Agency, Inc.
(949) 438-6262
aescarcega@thesmartagency.com
