Phoenix Snags Kansas Warehouse Facility
- Dec 26, 2019
The demand for industrial space across the Midwest remains high as an 880,000-square-foot industrial facility in Kansas was leased up as soon as it changed ownership.
Phoenix Investors acquired the large industrial property at 2654 Highway 169 in Coffeyville, Kan. for an undisclosed price. The property is on a 105-acre site and features clear ceiling heights up to 39 feet, 70 dock doors, three drive-in doors, air conditioning and 630 surface parking spots. The industrial building is located adjacent to the Coffeyville Municipal Airport and also nearby Highways 166 and 169 and Interstates 35, 44 and 70.
The property was initially built as a distribution center for Golden Books in 1978 and added more phases through to 1999. Amazon then came into the scene and used the building as a fulfillment center from 1999 to 2014. According to Anthony Crivello, executive vice president of Phoenix, the property was substantially vacant after Amazon left.
Crivello told Commercial Property Executive that the property was in excellent condition and is ready for immediate occupancy. He added that the property offered an ideal location for tenants looking for national and regional distribution uses.
And on the heels of the acquisition, Phoenix also signed a lease for the entire building to Array Technologies. The company will use the building for the distribution of single-axis solar tracking equipment. Crivello told CPE that the new lease was finalized during due diligence while under contract.
The transaction was brokered by Marcus & Millichap’s Ken Szady and the senior mortgage financing was provided by Wisconsin Bank & Trust.
Outside Kansas, Phoenix Investors also purchased a 1.8 million-square-foot portfolio of three properties in Illinois in June furthering their company’s portfolio of logistics space.
Midwest’s Growing Industrial Appeal
The industrial market has had a stellar year and demand will remain strong due to healthy market fundamentals, according to a Cushman & Wakefield report on the Midwest’s industrial sector. Across the Midwest, vacancy rates for the industrial market decreased to 4.4 percent quarter-over-quarter and saw 46.5 million square feet absorbed year-to-date.
With strong absorption and tightening vacancy rates, the Midwest currently has 77.7 million square feet in the construction pipeline that represents approximately 23 percent of the U.S. total. The report added that the Midwest will remain a strong region for industrial throughout 2019 and into the new year.