Phoenix – A company formed by Wentworth Property Co. in Phoenix (James Wentworth, Sr., James Wentworth, Jr., principals) is working to obtain zoning approval to develop more than 1 million sq. ft. of industrial space in multiple warehouse structures in the southwest Phoenix area. Wentworth is under contract to acquire the 80-acre site in a $10+ million deal that is contingent on zoning approval. The property is within the I-10 Corridor at the northwest corner of 59th Avenue and Van Buren Street.
The owner of the land is El Dorado Van Buren LLC, a company formed by El Dorado Holdings Inc. in Phoenix (Mike Ingram, principal). Industry sources say the land should trade for more than $10 million ($3.00+ per foot). The sale is being negotiated by Brian Lee of Cassidy Turley Arizona in Phoenix. The buyer is asking for a change in zoning from residential (R-5) and commercial (C-2) to allow for a PUD (planned unit development). That is a highly coveted zoning classification as the property owner is able to develop the distribution buildings without having to go through the entitlement process a second time.
Phoenix-based Butler Design Group is designing the industrial park. James Wentworth, Jr. says the company will develop speculative distribution buildings, look for build-to-suit deals and possibly sell some parcels to end users. Lee, Mike Haenel and Andy Markham of Cassidy Turley have the marketing assignment.
Wentworth, Jr. says plans are still in the works, but all of the structures will be distribution product and there could eventually be 1.3 million sq. ft. of space on the site. Wentworth representatives and the company’s marketing team are kicking around the idea of building 200,000-square-foot and 325,000-square-foot structures in early phases of construction. Contractor still to be selected. Wentworth is looking for a joint venture financial partner to develop the industrial park . . . that will likely be a deep-pocketed institutional investor. Wentworth is hopeful to have zoning in place by late first quarter 2013 and will close the acquisition in time for a second quarter or third quarter start of construction. Wentworth Jr. wishes he could roll the calendar ahead by a few years.The Arizona Department of Transportation (ADOT) is in the midst of trying to decide where it will locate a section of the 202 Loop and connect Interstate 10 on the north to I-10 on the south, bridging the Ahwatukee area to central Phoenix. Many believe installing the freeway along 59th Avenue and forming the eastern border of its tract makes the most sense. That work is still another 6 to 10 years away from being complete.
Over the years, BREW has reported Wentworth Property developing, buying and selling several office and industrial projects in the Phoenix area. Wentworth Property will serve as asset manager and will oversee the ongoing development of the multi-building complex at 59th Avenue. Wentworth Property has been one of the most active developers of industrial and office buildings in the Valley.
The privately-held Wentworth Property is looking for additional office and industrial development opportunities in the Phoenix area . . . the company will also buy existing product.
In July, BREW reported a venture formed by Wentworth Property and Northwood Investors in New York City, N.Y. paying $53.7 million ($61.30 per foot) to purchase a 876,000-square-foot office-industrial project in Tempe. The seller was Freescale Semiconductor Inc. in Austin, Tex. (NYSE:FSL). The 135-acre office-industrial complex is located along the north side of Elliot Road and just west of the Loop 101 (Price Freeway). The project has five main buildings and several, smaller support structures. Freescale occupies about 75 percent of the space in the project, which is now being called Discovery Business Campus. A 166,000-square-foot office structure and a 66,000-square-foot fabrication building are available for lease. Additionally, there is about 50 acres of improved but undeveloped land that will be used for future development. The venture has just completed installing $13 million in infrastructure, including a loop road through the project. That investment is the first in the Valley for the privately-held Northwood Investors.
In January 2007, BREW reported Wentworth teaming up with another institutional investor to develop a roughly 2 million-square-foot industrial park in Buckeye being called Interstate Commerce Center at Buckeye. USAA Realty Co. in Phoenix is Wentworth’s partner in that venture.
Get more from the Wentworths at (602) 296-1100. Jim Kenney is the pres. of El Dorado Holdings . . . (602) 955-2424. Reach the Cassidy Turley agents at (602) 954-9000.
