By Kristena Hansen|Phoenix Business Journal
Two massive industrial buildings within the Buckeye Logistics Center have been scooped up by a Denver-based real estate investment trust for a whopping $44.3 million, according to a statement Thursday by the Phoenix office of Jones Lang LaSalle.
IIT Acquisitions LLC, a wholly-owned subsidiary of Industrial Income Trust Inc., paid about $64.76 per square foot for the two buildings, which total 684,064 square feet. The seller was Principal Real Estate Investors.
Built in 2008, the two industrial buildings are both fully leased to five tenants: HD Supply, Kellogg, Mor Furniture for Less, Philosophy and Victory Packaging.
The structures are among about 1.68 million square feet of industrial space located within the Buckeye Logistics Center, a 162-acre big-box industrial park near Buckeye Road and 67th Street. That industrial park is also where Amazon.com occupies a 1 million-square-foot facility and where Trammell Crow Co. and the Alter Group will build a $36 million, 605,700-square-foot spec building last year.
The park is capable of supporting 3 million square feet of space.
“This is hands down one of the best institutional-quality projects sold in Phoenix this year,” Mark Detmer, a managing director of JLL’s Capital Markets group, who represented both buyer and seller in the transaction along with Bo Mills, said in the statement. “It is fully leased to five strong credit tenants, has been institutionally owned and maintained since its delivery to the market, and sits at a high-profile location. These features — along with the submarket’s rapid absorption rate and the property’s tremendous upside potential through rent growth — create a scenario that’s extremely hard to replicate.”
