Industrial Lures La La Land Investors
An LA-based commercial real estate investor is taking a chance on Ryan West Business Park in Southwest Valley. (We expect another deal any minute now, just because they always make sequels.)
Cohen Asset Management just picked up, a 243k SF distribution park in Tolleson for $14.6M from EG Properties. The complex, built in 2001 by Ryan Cos and a former NAIOP Arizona Industrial Building of the Year, still has some upside for Cohen, says Cassidy Turley's Will Strong (here with CT's Mike Beall on a recent fishing trip), who brokered the sale along with CT's Mike Haenel and Andy Markham. The property includes an additional 61,700 SF that Cohen can lease for additional income.
“There's been an uptick in smaller tenant activity, under 200k SF,” Will tells us. Industrial spaces under 200k SF have an 11.1% vacancy rate.
Next up, Will's team will try to ride that strong demand among investors at: 10 West Logistics Center, a planned 1.3M SF DC being developed by Wentworth Property Cos;Palo Verde Distribution Center, a 303k SF warehouse owned by IIT; and 10397 W Van Buren, a 278k SF warehouse owned by IndCor Properties. Phoenix was "No. 1 in the nation for net absorption of industrial property in the second quarter, and that creates a perception of confidence for investors," he says.