Contour JV Lands $68M for Large Phoenix-Area Development
Upon completion, the industrial facility will encompass 1.2 million square feet.
Contour and co-developer Miramar Industrial Partners, the industrial arm of Miramar Capital, along with capital partner DWS Group, have obtained financing for Southern Industrial Center, a 1.2 million-square-foot development in Buckeye, Ariz. Bank OZK provided the $67.7 million construction loan, Maricopa County records show.
The partnership acquired the 77-acre site in late 2021 for $14.5 million, according to the same source. SVN Desert Commercial Advisors’ Paul Borgesen and Dylan Sproul arranged the deal. The facility recently broke ground and is expected to come online in mid-2023.
Southern Industrial Center will take shape on the southeast corner of W. Southern Avenue and S. Apache Road, adjacent to distribution centers occupied by Walmart and Cardinal Glass. JLL will lead leasing efforts at the property that caters to warehouse, e-commerce and logistics tenants.
The development site is easily accessible, with Interstate 10 less than 7 miles away and within 3 miles of Arizona State Route 85. Downtown Phoenix is 35 miles east.
Contour’s growing Phoenix footprint
Since entering the Phoenix market less than two years ago, Contour has acquired two other development sites in Greater Phoenix in addition to the Southern Industrial Center parcel. The company teamed up with Shopoff Realty Investments to build Buckeye 54, a 900,000-square-foot project in Buckeye that is currently in pre-development phase.
Contour’s other large-scale development will take shape on an infill site totaling 112 acres in Mesa, Ariz. Designed by ARCO/Murray, the two-phase campus dubbed Sossaman 202 Industrial Park will encompass 1.5 million square feet.
Industrial construction across the metro
As of mid-June, there were 116 industrial projects totaling approximately 44.1 million square feet under construction in Greater Phoenix, CommercialEdge shows. Furthermore, 41 projects amounting to nearly 14.8 million square feet broke ground across the metro in the first five months of the year. The developments range from 13,000 to 3.8 million square feet, the upper limit being the initial phase of Taiwan Semiconductor Manufacturing Co.’s massive factory.
Buckeye sees a fair share of industrial construction as the Phoenix suburb will also be home to KORE Power’s $1.25 billion gigafactory. Doubling its initial size, KOREPlex will span 2 million square feet and is expected to be up and running in 2024.
Also in Buckeye, BET Investments broke ground on the 145-acre Buckeye I-10 Logistics, the largest industrial campus underway alongside Interstate 10. Initially dubbed Verrado Logistics Center, the 2.2 million-square-foot development will come online in three phases, with the 641,000-square-foot Phase I slated for completion before the end of the year.