Libitzky Property Cos. has purchased Parc Germann, a 224,471-square-foot industrial campus in Chandler, Ariz. TA Realty sold the Class A for $43.3 million in an all-cash deal, according to public records. Cushman & Wakefield represented the seller.
TA Realty paid $28.5 million for the asset in 2020 shortly after its completion, according to CommercialEdge data. A joint venture between Jackson-Shaw and LaPour Partners sold the property.
The campus consists of two buildings—a 92,261-square-foot, rear-load facility and a 132,210-square-foot, front-load facility—with 28-foot clear heights. The property also features a 175-foot truck court and a combined 62 dock-door count, as well as a total of 14 drive-in doors and 262 parking spaces.
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Parc Germann was fully leased at the time of sale. Its three tenants, SKU Distribution, Walts TV and Adept Life Sciences, have 3.9 years of weighted average lease term remaining. Adept has been on the roster since the property previously traded four years ago.
Located at 2215 and 2225 E. Germann Road, the property is near the Chandler Municipal Airport and Arizona State Route 202. The Phoenix-Mesa Gateway Airport and Phoenix Sky Harbor International Airport operate some 11 and 22 miles away, respectively.
The campus is part of Chandler Airpark, a 9-square-mile area that witnessed industrial deliveries of 2.2 million square feet in the five years ending in 2020, according to the Chandler City Council. However, the park will not see its supply of large industrial buildings expand further as the city recently imposed strict regulations on future developments in the submarket.
Cushman & Wakefield Executive Vice Chair Will Strong and Director Michael Matchett, together with Senior Associate Molly Hunt and Senior Financial Analyst Callahan Conway, represented the seller.
Phoenix’s industrial absorption improves
According to a recent Cushman & Wakefield report, private investors in the semiconductor, battery production and energy storage technologies poured more than $60 billion into metro Phoenix’s manufacturing market.
To meet increasing demand, construction projects in Phoenix kept up. More than 35.4 million square feet of industrial space were underway in the metro as of June, the report shows. Of the 14.1 million square feet that developers completed in the second quarter, 84 percent were speculative.
Even with a year-to-date overall net absorption of 8.4 million square feet that outshined last year’s 7.1 million square feet during the same interval, the Valley’s industrial vacancy rate still climbed 90 basis points quarter-over-quarter, as well as 680 basis points year-over-year, and clocked in at 11.5 percent in June, Cushman & Wakefield reveal.
However, this hasn’t deterred investors. Earlier this month, MDH Partners acquired KV Buckeye 10, a 249,000-square-foot industrial asset in Buckeye, Ariz., for $51 million, while last month EQT Exeter purchased Falcon Park 303’s Phase II, a 326,018-square-foot industrial facility, for $50 million.