Creation to Develop 274 KSF Industrial Campus Near Phoenix
The three-building property will come online in the third quarter of next year.
Creation will start work on its first project in Tempe, Ariz. The developer has received final city approvals for the construction of Nexus Commerce Center, a three-building, 274,000-square-foot industrial campus.
Site work at the 16-acre property will begin in October and completion is expected in the third quarter of next year. The campus will rise in place of a soon-to-be-demolished, two-story office building that was foreclosed. The 215,320-square-foot property, dubbed Elliot Corporate Center, was previously anchored by the University of Phoenix as a call center.
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Partners on the project include design and construction firm LGE Design Build, while Amherst and CrossHarbor Capital Partners provided financing services. Cushman & Wakefield Executive Vice Chair Mike Haenel, Executive Managing Director Andy Markham and Vice Chair Phil Haenel will oversee leasing efforts.
The campus will feature suites ranging from 15,000 to 100,000 square feet. The property will rise at 875 West Elliot Road, within the Interstate 10 industrial corridor, 9 miles from Phoenix Sky Harbor International Airport and 24 miles from Phoenix-Mesa Gateway Airport. Downtown Phoenix is some 13 miles northwest.
The industrial park will also be within 2 miles of a 149,755-square-foot building that changed hands last year in a $97.8 million portfolio transaction.
Creation expands industrial inventory
The news comes on the heels of Creation having completed a development in Fort Worth, Texas. The three-building campus measures 531,601 square feet and was already 70 percent leased upon delivery.
In February, the firm broke ground on Thunderbird Commerce Park, a 243,360-square-foot building in Scottsdale, Ariz. The $60 million project is expected to come online later this year.
Largest industrial construction pipeline nationally
Metro Phoenix had the largest industrial supply pipeline as of February, at almost 42.7 million square feet under construction, according to the latest CommercialEdge industrial report. The market’s vacancy rate in the same month clocked in at 3.2 percent, 180 basis points lower than the national average and the lowest among Western markets.
Last month, a joint venture between Ryan Cos. and ESI Ventures broke ground on a two-building industrial campus in Surprise, Ariz. The 145,000-square-foot project is expected to come online by the first quarter of next year.
In February, Amkor Technology received approvals from the Peoria City Council to build a more than 500,000-square-foot advanced semiconductor packaging and test facility. The $2 billion development will be the largest outsourced advanced packaging plant in the U.S. The property will be completed by September 2034.
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