Walmart will be the tenant behind the biggest industrial deal in Arizona history, in Glendale.
Glendale city manager Kevin Phelps announced Oct. 12 at the City Council’s afternoon workshop that Walmart is the new tenant behind the $186 million deal in September that Real Estate Daily News called the highest single-building industrial sale price in Arizona history.
Phoenix-based developer LPC (Lincoln Property Company) Desert West completed the sale of the 1.25 million-square-foot Park 303 Phase I in Glendale to BentallGreenOak, a global real estate investment management advisor and real estate services provider.
The estimated revenue to the city more than doubled from the original economic benefits study to $8.8 million over a 10-year period.
“Oftentimes we don’t know what the end user is, so we kind of give a very conservative estimation of what those revenues would look like. In this particular case on the Lincoln property, we anticipated that the ongoing revenues over 10 years would be about $4.4 million just based on a blended manufacturer/industrial use. We now know who the tenant is,” Phelps said at the Tuesday meeting, making the tenant public for the first time. “Now the new estimated revenue to the city is $8.8 million for that 10-year period. So it was more than double in that case.”
Revenue comes to the city in the form of construction sales tax, a lease tax, property tax, and permit fees.
Phelps characterized the Walmart industrial project as “a major operation.”
Phase I is on 71 acres fronting the Loop 303 freeway, between Bethany Home Road and Glendale Avenue. It is part of LPC’s larger Park303 master-planned industrial park, Real Estate Daily News noted, spanning 210 acres and with the capacity to support nearly 4 million square feet of industrial development.
Other corporate neighbors in the Loop 303 corridor include Boeing, Microsoft, White Claw, Red Bull, and Ball Corp., plus hundreds of new residential homes.
The Lincoln property followed another huge transaction in Glendale this year. The multifamily Arrowhead Summit planned development sold for $123.6 million.