Chicago Madison LP, a partnership entity made up of principals from Sunbelt Management Co. of Del Ray Beach, FL, has spent $8.2 million for a 30-acre parcel at the northwest corner of Galveston Street. The partnership hasn't plotted the yield for the acreage, but will be building retail on the northern 15 acres and office and industrial on the southern half, says Mike Haenel, a senior vice president in the Phoenix office of Grubb & Ellis who represented Chicago Madison in the purchase. The partnership is interviewing design firms to work on the project, including the Butler Design Group.
SpeedFam-IPEC, a semiconductor industry machine supplier, is the seller. The company, which has its headquarters just to the south of the parcel, had purchased the site more than four years ago with an eye toward future expansion. But the turndown in the high-tech industry has forced the company to tighten its corporate belt. In May, the company announced layoffs for 12% of its workforce.
The $6.27 per sf for the land is a good price for a parcel near Interstate 10 and that far north in Chandler, Haenel tells GlobeSt.com. There is very little available land near the freeway for commercial use, he says. "It's a good price," he says. "There's real strong demand in the area, particularly in this pocket."
Flexible industrial space--with a higher quality exterior finish, heavy landscaping and more parking--would be very attractive to tenants looking for space in the area, he says. Office and industrial space would benefit from surrounding amenities such as restaurants, bars, shopping and hotels, he says. The project is less than a half mile from the Chandler Pavilions, a major retail center that borders the interstate and a half-mile south of a thicket of shops and restaurants.
Mostly big box retailers would be attracted to the 15 acres the partnership plans to devote to retail space, Haenel says. Construction could begin later this year, depending on the design plans and approval schedule.
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