A 16-acre office-to-industrial conversion redevelopment site in Tempe was recently acquired by Creation RE + PE, CrossHarbor Capital Partners and Amherst for $13.5 million.
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A 16-acre office-to-industrial conversion redevelopment site in Tempe was recently acquired by Creation RE + PE, CrossHarbor Capital Partners and Amherst for $13.5 million.
The joint venture will be developing a brand-new, Class A shallow-bay industrial campus totaling 273,341 square feet across three buildings, a press release explained. The seller was Amherst, who will retain a co-general partner interest after previously serving as the lender on the occupied office building and foreclosed on the asset when the tenant vacated.
The new project has been named Nexus Commerce Center and is scheduled to commence construction in February.
The site currently contains a vacant 223,392 square-foot back-office/call center building that the joint venture buyer will be demolishing to pave way for its Nexus Commerce Center development.
Located at the corner of South Hardy Drive and West Elliot Road, the property is in a highly desirable infill location in one of the most dynamic submarkets in the entire Phoenix MSA with proximity to Phoenix Sky Harbor International Airport, according to the release.
Cushman & Wakefield’s Mike Haenel and Chris Walker in collaboration with Will Strong of the firm’s National Industrial Advisory Group represented the seller Amherst and buyer, a joint venture consisting of Creation, CrossHarbor, and Amherst in the land sale of the 16-acre site.
Additionally, a Cushman & Wakefield Equity, Debt & Structured Finance team of Rob Rubano, Brian Share, Max Schafer, Billy Coyle, and Niki Kretschmann arranged $39 million in construction financing for the joint venture buyer to develop the new 273,341 square-foot project.
Haenel said in the release that the project will remove an older, vacated commercial building from the market, introducing a new better use that is needed to meet the demand for this type of product along the I-10 industrial corridor.
“This investment offering was a rare opportunity to acquire an excellent infill site already zoned for industrial product, which will allow for quickened delivery of the new Class A project,” Haenel said.
The new Nexus Commerce Center will comprise three buildings: the 103,288 square-foot Building A, the 81,280 square-foot Building B and the 88,773 square-foot Building C. The project features 32’ clear heights, ample dock and grade loading, trailer and truck parking, and high-quality office space.
Brian Share, who led the construction financing process, said in the release that the debt markets are thawing and there has been meaningful improvement in the number of lenders quoting construction loans at higher leverage and lower spreads.
“Lenders recognized that Nexus benefits from its strong infill location, premier sponsorship, high-quality design and solid metrics,” Share said.
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