EastGroup Properties to Build Phoenix-Area Industrial Park

Gateway Interchange. Image courtesy of JLL

EastGroup Properties Inc. has development plans for Phoenix’s Southeast Valley. The company has assembled 50 acres in Mesa, where a seven-building, 655,400-square-foot industrial project will come online in two phases.

Phase I will comprise 359,700 square feet across four buildings, while Phase II—also slated for build-to-suit requirements—is set to feature three facilities totaling 295,700 square feet.

Dubbed Gateway Interchange, the campus will take shape at the intersection of Hawes Road and Loop 202, on an assemblage of four separate parcels that were acquired in successive transactions. The project’s development team also includes Butler Design Group as architect and Willmeng Construction as general contractor. Phase I is slated for groundbreaking in the third quarter of 2022, with delivery expected by the second quarter of 2023.

JLL Senior Managing Directors Steve Larsen and Pat Harlan, together with Senior Vice President Rick Collins, negotiated the land assemblage and purchase on behalf of EastGroup. The brokerage trio will also serve as the exclusive leasing brokers at the property.

Jason Barney and John Hartman of High Bridge Partners represented the land sellers in the assemblage.

A bustling submarket

Gateway Interchange. Image courtesy of JLL

Once completed, the campus will feature both dock high and ground level loading, 28- to 32-foot clear heights, full concrete truck courts and ESFR sprinkler systems. The property will also have six outdoor amenity areas, interconnected by trails, that will feature covered patios, outdoor dining and turf areas for outdoor games.

The development site is some 32 miles southeast of downtown Phoenix and 17 miles southeast of downtown Mesa, just north of the Phoenix-Mesa Gateway Airport. The location is 2 miles from a 516,601-square-foot industrial project developed by Trammell Crow at the center of the Elliot Technology Corridor.

Another project to sprout in the vicinity is the 1.5 million-square-foot HUB @ 202, which will come online at the intersection of Warner and Sossaman roads, west of the Phoenix-Mesa Gateway airport. Wharton Industrial intends to break ground on the spec campus in the second quarter of 2022.

The Greater Phoenix market continues to lead the nation in terms of industrial development. According to a recent CommercialEdge report, the metro had more than 36.3 million square feet of space underway as of February, representing 12.9 percent of stock. The same data provider shows more than 3.8 million square feet were under construction in Mesa.