Isola to Consolidate Operations in New Arizona HQ
- Aug 30, 2019
Lotus Project Chandler, a new 53-acre corporate park under development in Chandler, Ariz., has nabbed its first tenant by signing up laminates maker Isola Group for a full-building lease measuring 118,383 square feet. The Class A, purpose-built flex industrial building in the suburb of Phoenix will house the company’s new global headquarters.
Conor Commercial Real Estate is developing the two-phase Lotus Project, located just off of Kyrene Road near Interstate 10 and the Loop 202. At full build-out, the complex will total more than 650,000 square feet of Class A space for advanced manufacturing, light industrial and office uses.
Isola is slated to begin a phased move-in starting in the fourth quarter of this year, which will consolidate the firm’s administrative, manufacturing and research and development operations from two existing locations. The building at 6565 W. Frye Road meets Isola’s exacting needs in terms of clear height, power and location and features a modern cellular manufacturing approach that allows for rapid, flexible delivery of small batches of product.
Tapping Chandler’s industrial boom
Steve Larsen and Jason Moore of JLL represented Isola in the lease deal, while Jackie Orcutt, Rusty Kennedy, John Grady, James Cohn and Jonathan Teeter of CBRE represented Conor Commercial. JLL’s Project Development Services Team oversaw Isola’s build-out.
The first phase of Lotus Project, scheduled for completion in September, includes four industrial buildings totaling 470,000 square feet and the second phase will deliver either two or three additional buildings with either office or industrial use. The site is located in the Southeast Valley region of metropolitan Phoenix, less than 10 miles from Sky Harbor International Airport.
Chandler is among the most coveted industrial markets in the Phoenix area. Like neighboring Mesa, the city is seeing new speculative construction based on robust demand, abundant skilled labor and the availability of land for development. This surge of new construction in two markets replete with older, lower-quality industrial stock has sparked a “flight to quality” effect for many tenants.
Illinois-based Conor Commercial delivered a 265,550-square-foot industrial facility in Winfield, Ill., in partnership with Kensington Realty Advisors last month. Last year, the company partnered with American Realty Advisors to break ground on an 814,852-square-foot, sustainable industrial complex in Fremont, Calif.