Trammell Crow, CBRE Global Investors Deliver Industrial Park
- Sep 16, 2020
Trammell Crow Co. and CBRE U.S. Development Partners 5 have completed the development of Park Aldea, a four-building industrial campus in Phoenix. The 356,000-square-foot project delivered with one of the structures, the 87,300-square-foot Building C, leased in its entirety to international shipping company Green Worldwide.
Carrying the address of 10100-10250 W. Montebello Ave. near the intersection of Loop 101 and Cardinals Way, Park Aldea occupies 27 acres roughly 15 miles from downtown Phoenix and Phoenix Sky Harbor International Airport. TCC and CBRE U.S. Development Partners 5, a $616 million fund sponsored by CBRE Global Investors, commenced construction of the project in September 2019, with Haydon Building Corp. serving as general contractor. Now, Park Aldea opens its gates with a major advantage: It is the first Class A industrial development to sprout up along the 10-mile western stretch of Loop 101 since 2008. Additionally, Park Aldea won’t have very many competing properties as neighbors—ever.
“Locally along the Loop 101, there is limited risk of overdevelopment, as there is very little land that is entitled and available for industrial development,” Ryan Norris, a vice president with Trammell Crow Co. Phoenix, told Commercial Property Executive. “With continued growth in demand for single-family housing in the West Valley, we expect to see more industrial demand along this stretch of the Loop 101 freeway.”
In addition to the facility that Green Worldwide just leased, Park Aldea features the approximately 76,200-square-foot Building A, the 76,300-square-foot Building B and the largest of the four tilt-up concrete warehouses, the 118,200-square-foot Building D. Envisioned by Butler Design Group, Park Aldea debuted at the dawn of a shift in the submarket. “We are beginning to see significant demand from home builders, manufacturers and distributors as the West Valley continues to expand beyond the traditional big-box warehousing that is typically seen south of the I-10,” Norris said. “Additionally, the demand for mid-bay industrial space between 20,000 square feet and 100,000 square feet has been expanding rapidly as the local West Valley economy grows.” CBRE Phoenix’s Mitchell Stravitz, Cooper Fratt and Tanner Ferrandi are exclusive leasing agents for the property. Ted Liles from Cresa represented Green Worldwide in the lease transaction.
Answering the call
While the second quarter of 2020 brought the metropolitan Phoenix industrial market its highest volume of construction deliveries since the fourth quarter of 2013, the market still logged positive net absorption totaling nearly 1.9 million square feet, according to a report by CBRE. Additionally, although the development pipeline remains full, CBRE expects that pent-up market demand will compete for tightening supply in the coming quarters.
Beyond Park Aldea, TCC Phoenix continues to respond to cries for new product. The company has recently completed construction of the 415,000-square-foot Gilbert Gateway Commerce Park in Gilbert, Ariz., and will soon break ground on the Cowden Logistics Center, a 285,000-square-foot building in Tolleson, Ariz. And while other industrial developers may struggle to find developable land near Park Aldea, TCC Phoenix has options in the area. As Norris noted, “TCC Phoenix has access to more land at Aldea Centre that the team sees as future industrial development, accommodating users under 300,000 square feet.”