Cohen Asset Management has sold a 400,000-square-foot Class A cross-dock industrial building in Phoenix to Karney Properties for $69.6 million. Cushman & Wakefield advised the seller.
The building is fully leased to The Home Depot for use as a return center, one of very few such facilities that the chain operates nationwide.
Located at 7200 W. Buckeye Road, the property has quick access to the junction of I-10 and Loop 202. It was completed in 2009 and sits on nearly 25 acres, according to CommercialEdge data.
The building features a fully air-conditioned warehouse, high-speed fans, equipment on every door, a gated yard area with a security station, about 4.5 percent of recently upgraded office space and roughly 4 acres of excess trailer parking that was customized by and for the tenant.
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Will Strong, Michael Matchett and Molly Hunt of Cushman & Wakefield’s National Industrial Advisory Group – Mountain West represented Cohen Asset Management in the transaction.
Based in Santa Monica, Calif., Karney Properties is a family-owned, institutionally operated real estate investor that for more than 70 years has acquired, owned, developed, financed and managed a portfolio of industrial, logistics, production and creative office properties. Most of these are in prime areas of the Los Angeles and Orange County markets, with the portfolio also expanding strategically in Phoenix and Las Vegas.
Rising vacancy
The Phoenix industrial market has seen vacancies rise across all submarkets, to an overall 12.7 percent, driven by both ongoing deliveries and growth in sublease space, according to a third-quarter report from Cushman & Wakefield. This in turn has undercut asking rental rates, though these seem to have stabilized more recently.
In the Southwest Valley submarket specifically, overall vacancy is 15.0 percent, with very modest net absorption of not quite 49,000 square feet in the third quarter, against an inventory of 191.5 million square feet.
In January, Bixby Land Co. sold two fully leased, last-mile industrial properties in Phoenix totaling 491,152 square feet in separate transactions to two buyers, both brokered by Cushman & Wakefield. LaSalle Investment Management acquired Canal Crossing, a 155,144-square-foot facility in the Airport submarket, and Link Logistics acquired Riverside @ 51, a 336,038-square-foot warehouse in the Southwest Valley submarket.