Hines Grabs West Valley Distribution Center
- Aug 25, 2016
By Keith Loria, Contributing Editor
Phoenix—Hines, through Hines Global REIT II, Inc., has acquired Goodyear Crossing II, an 820,384-square-foot, Class A industrial warehouse located in the Goodyear submarket of Phoenix, for $56.2 million, from Gramercy Property Trust.
“First and foremost, Hines is excited about industrial and logistics investment opportunities in Phoenix, which we view as a rising market and which, by absorption, is a top 10 market in the U.S.,” Palmer Letzerich, Hines senior managing director, told Commercial Property Executive. “We were particularly attracted to this building’s yield, credit tenancy, and flexible specs, which include HVAC throughout the warehouse and expansion capability.”
The property is currently being utilized by Amazon.com, which has occupied the project since its completion in 2008, and utilizes it as a distribution facility.
Also included in the sale is an adjacent parcel totaling approximately 11.8 acres that will allow an expansion of approximately 285,000 square feet, should the tenant wish to grow its operations there.
Located at 16920 W. Commerce Drive, the one-story property also includes 1,400 parking spaces.
The acquisition marks Hines Global REIT II’s fifth investment, and its first within the Southwest region.
“As logistics and e-commerce requirements continue to grow in size, we view Phoenix as a compelling destination for tenants and investors alike,” Letzerich said. “The asset compliments the Hines investment strategy for the greater Phoenix logistics market where our team is actively pursuing acquisition and development opportunities.”
Gramercy Property Trust was represented in the transaction by JLL.