A California-based real estate firm has paid $116M for a Lowe’s-occupied warehouse in southeast Mesa.
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The deal is one of the largest single-building industrial sales in the Phoenix metro area so far this year, the Phoenix Business Journal reported. The buyer was Aris Mesa LLC.
The 1.2M SF Class-A warehouse sits on 85.8 acres at 7111 S. Crismon Road in the Valley. It is just one property — Building C — within the partially completed 268-acre industrial park called The Cubes at Mesa Gateway, which is expected to span 4M SF at full build-out, according to PBJ.
Chicago-based firm CRG is developing the five-building industrial park, which broke ground in 2022 and has had a phased build-out. Cushman & Wakefield brokers represented CRG in the sale of Building C to Aris Mesa.
Lowe's Home Centers LLC became a tenant of the warehouse, a built-to-suit regional distribution center completed in 2023, in January 2022, PBJ reported. The property remains 100% leased to Lowe’s, according to Cushman & Wakefield. The long-term lease will continue through July 2033, with renewal options after.
The deal comes amid increased industrial demand in the Phoenix metro area, including in Mesa. In the first quarter, industrial vacancy dropped to 9.2% as net absorption exceeded new supply, according to a Colliers report. Sales volume reached more than $1B in the first quarter, according to a Q1 Matthews report, suggesting “continued investor demand.”
Industrial development has been focused on large logistics facilities, with the Phoenix-Mesa Gateway Airport area a key location, the Matthews report noted.
The Mesa Gateway corridor, which includes the airport, has seen particular industrial growth in recent years as “one of the region’s most active industrial corridors, driven by logistics, manufacturing and technology users,” according to The Mesa Tribune.
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