Commercial real estate firm CBRE has sold a Tolleson industrial property for $35 million.
The Dallas-based firm announced the sale of the 91st Avenue Distribution Center to Nearon Enterprises LLC. Located at 670 S. 91st Ave., the 417,600-square-foot property was constructed in 2009 on a 21.83-acre lot. The freestanding, Class A warehouse and distribution building was leased at the time of the sale to Gladiator Worldwide Logistics.
”Although the asset was partially leased at the time of acquisition, pricing and terms were in line with where this would execute if stabilized,” said Shaun Moothart, a member of CBRE's debt and structured finance team. “It’s a great example of the lender appetite for quality sponsorship and the solid fundamentals of the Phoenix industrial market.”
The center has immediate access to the Interstate 10 and Loop 202 freeways and sits 11 miles west of downtown Phoenix.
Darla Longo, Rebecca Perlmutter, Barbara Perrier, Brett Hartzell, Joe Cesta, Eric Cox, Danny Calihan, Pat Feeney and Rusty Kennedy of CBRE represented the sellers in the transaction.
Bruce Francis, Mr. Moothart, Bob Ybarra, Dana Summers, Doug Birrell and Jennifer Ansari of CBRE’s debt and structured finance team arranged the $19.35 million acquisition loan on behalf of Nearon.
Nearon was founded in 1945 and invests in commercial real estate throughout the western U.S. The company owns and operates approximately 3.7 million square feet of industrial properties. Its portfolio is primarily concentrated in California, Arizona, Utah and Colorado.
“The demand for quality distribution space from investors, lenders, and occupiers is a testament to the strong fundamentals of logistics real estate overall, and in Phoenix specifically,” said Nearon Senior Vice President Nick Rini. “We’re seeing rapid leasing velocity in the market, and the debt capital markets exceeded our expectations of what was attainable."
According to CBRE research, the Phoenix industrial market has absorbed 5.6 million square feet during the first quarter of 2021. It was the 44th consecutive quarter of gains. CBRE says this was driven by strong leasing activity throughout the Valley, newly completed buildings, several pre-leased projects and build-to-suit completions. Leasing activity in the Valley is already on track for another record-breaking year.