Wharton Industrial Lands $224M for Phoenix Project

At full buildout, the development will total 1.5 million square feet.

The Hub @ 202. Image courtesy of Cushman & Wakefield

New York-based Wharton Industrial, in partnership with Madison Ventures Plus, has landed a $224.1 million loan for The HUB @ 202, a 1.5-million-square-foot industrial project to take shape in Mesa, Ariz.

MSD Partners LP, the family office of Michael Dell, provided the three-year, fixed-rate financing. Cushman & Wakefield assisted the borrower in the deal.

Part of the financing went towards land acquisition. The joint venture purchased the 101-acre development site for $27.5 million, according to Maricopa County records. The parcel is considered to be one of the last large contiguous swaths of land in the center of the Southeast Valley submarket. The developer intends to break ground on the project in the second quarter of 2022.

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At full buildout, The HUB @ 202 will encompass 11 buildings ranging from 65,000 to 270,000 square feet with 28- to 36-foot clear heights. Plans also call for 73 trailer parking spaces and 1,429 car parking spaces at the property.

The project will come online at the intersection of Warner and Sossaman roads, according to Phoenix Business Journal, just west of Phoenix-Mesa Gateway International Airport and south of the Loop 202. The location is also near ElectraMeccanica’s plant, under construction since May.

Cushman & Wakefield’s John Alascio, Dave Karson, Chris Moyer, Will Strong, Kirk Kuller, TJ Sullivan, Chuck Kohaut and Zachary Smolev negotiated the financing on behalf of the joint venture.

Brimming with industrial developments

Phoenix’s Southeast Valley has been a hot spot for industrial developments in recent months, with Mesa being one of the submarket’s main points of attraction. According to CommercialEdge data, Mesa had some 3.9 million square feet of industrial space in the pipeline as of January 10, with nearly 15 million square feet in the planning stages.

One of the largest projects to break ground in Q4 2021 was CRG’s 4 million-square-foot The Cubes at Mesa Gateway. Taking shape between East Pecos and East Germann roads, the industrial park will offer multiple building and size options ranging from 250,000 to 1.2 million square feet. Delivery is slated for 2024.

Another Mesa development, totaling 1.1 million square feet, is nearing completion within the Elliot Road Technology Corridor. Marwest Enterprises broke ground on Elliot 202, a two-building speculative industrial campus, in May.

In the second quarter of 2022, yet another industrial project will reach its finish line. Ryan Cos. and DWS Group started construction on the 516,121-square-foot Confluence at Mesa Gateway in July. The six-building, speculative development is near the intersection of Loop 202 and Freeway 24.

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