Speed Bay Locks In $100M for Phoenix Flex Industrial

Speed Bay Warehouse Solutions has obtained a $100 million loan for Carlton Square, an 84,707-square-foot flex industrial campus in Phoenix, according to Yardi Research Data.

Wells Fargo Bank issued the loan after the Colorado-based company acquired the property for $17.4 million. Top 10 Properties sold the asset after 32 years of ownership.

Carlton Square is a Class B, four-building industrial property at 1711 W. Rose Garden Lane. It was constructed in 1981 and is fully leased.

The campus’ tenant roster includes Raymar, Distinctive Construction Group and CAPS Sports Grill, among others, according to the same source.

The 7-acre asset is close to Arizona Veterans Highway, in an area with multiple bus stops. Downtown Phoenix is 17 miles away, while Phoenix Sky Harbor International Airport is within 21 miles.

Metro Phoenix’s strong investment activity

Metro Phoenix’s industrial investment volume hit $1.1 billion year-to-date through July, with properties trading at an average of $176 per square foot, according to the latest Yardi Matrix report.

This placed it on the fifth spot among the top 25 U.S. markets, as it outpaced most Western markets, such as Orange County ($747 million) and the Inland Empire ($658 million). Phoenix remained a pricier market than most, with the per-square-foot average above the $130 national figure.

Recent transactions included JLL Income Property Trust’s $140 million acquisition of Glendale Distribution Center. The 1 million-square-foot warehouse in Glendale, Ariz., changed hands earlier this month from a joint venture between Clarius Partners and Cresset Partners.

At the beginning of the year, CIP Real Estate purchased an 809,230-square-foot industrial park in Mesa, Ariz., in a $168.3 million transaction. Canyon Partners Real Estate LLC sold the property, dubbed Broadway 101 Commerce Park.