The property is located near the southeast corner of Roosevelt Road and 73rd Avenue. It is being combined with an equally sized, abutting tract. Mark Becker, a partner in the Phoenix-based development firm, tells GlobeSt.com that "we are looking at build-to-suit opportunities right now." The projects could range from 100,000 sf to 250,000 sf, he says. The acreage can support up to 600,000 sf.
Mack plans to begin construction on for-lease space at the yet-to-be-named project when a substantial portion of an adjacent project, the Mack Enterprise Center, is leased, he says. The Mack Enterprise Center, which is at the north of the corner of Van Buren Street and 75th Avenue, contains 407,000 sf of industrial space in three buildings. Construction on the project was recently completed. Space is being leased to tenants with needs from 6,000 sf to as much as 152,000 sf, the largest of the three buildings. To date, Mack has signed Western Parcel Express and Gift Box Corp. of America, both grabbing 32,000 sf in the development.
"It's slowed down, but with the small tenants we are still seeing some activity," Becker says. "The larger tenants over 50,000 sf have slowed down, which is why we targeted the smaller tenants with this project."
The Mack Enterprise Center includes buildings with bay depths from 140 feet to 180 feet. The tenant most attracted to the buildings are small manufacturers with some distribution needs.
With both projects, the close freeway proximity and relatively low land cost are major assets for attracting tenants, Becker says. Mack bought the first 18 acres from FL-based Avanti Property Group, for about $1 per sf, with the latest buy coming in at about $1.28 per sf, Becker says.
Even with infrastructure costs, including the construction of 73rd Avenue bisecting the project, land cost won't rise above $2 per sf, Becker says. "There is not much land like that available anymore," he says.
The buildings will be similar in design and size to those built at Mack Enterprise Center, Becker says. Although it depends on leasing activity, Becker estimates construction could begin in about a year.
Greg Vogel of the Scottsdale office of Arizona Land Advisors negotiated the land purchase. Grubb & Ellis Co.'s Phoenix holdings the leasing assignment for two buildings of Mack Enterprise Center.
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