WP Group Bets on Office-to-Industrial Conversion

1 min read

The firm acquired a 110,360-square-foot property in Phoenix.

Foothills Corporate Centre I. Image courtesy of Newmark

SDC Foothills Inc. has sold Foothills Corporate Centre I, a 110,360-square-foot office property in Phoenix. WG Group made its first investment in the metro with the acquisition of this Class B asset, planning to convert it to industrial use. Newmark represented both parties.

Completed in 1999, the property spans 10 acres and comprises a low-rise building with 109,920-square-foot floorplates and 660 parking spaces. The property was 64 percent leased at the time of sale, according to Newmark.

Located at 14415 S. 50th St., Foothills Corporate Centre I is next to Interstate 10 and Maricopa Freeway. The property is also within walking distance of numerous retail options, such as Best Buy, Home Goods and Ahwatukee Foothills Towne Center, as well as several dining options.

Newmark Executive Managing Director CJ Osbrink, Managing Director Scott Scharlach, alongside Co-Head of U.S. Capital Markets Kevin Shannon, worked on the transaction. Shannon was also part of the brokerage team that arranged the sale of another office property to be converted into a Class A industrial asset in the South Bay submarket of Los Angeles.

Office to industrial conversions in markets with high demand and low supply are challenging, and only some properties can undergo such changes. The property’s existing infrastructure, accessible location and clear heights fit the strategy of a flex conversion, Osbrink said in a prepared statement.

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