PHOENIX-An acquisition of 78 acres in the West Valley will be the site of the first ProLogis distribution development in the region in more than two years. Construction for the 1.2-million-sf ProLogis Park Riverside will begin in 2008, with the first phase of the $70-million project coming on line later that year.

The initial phase will put two spec distribution centers, totaling 647,000 sf, at the intersection of West 55th Avenue and West Lower Buckeye Road. Market demand will dictate the start of a third building.

Tyson Chave, vice president and Phoenix market officer for the Denver-based developer, says build-to-suit proposals won't be ruled out for the acreage. "We're looking at both build-to-suit for lease and building on a spec basis," he adds.

Chave tells GlobeSt.com that ProLogis acquired the land from a local seller, Newport Group 27 LLC, to strengthen its position in the Phoenix market through a ground-up development. "We already own about 3.4 million sf in the Valley, but didn't have a land position," he adds. "This project allows us to be active in industrial development in a Southwest market."

Chave adds ProLogis is making a concerted effort to maintain a position of growth in the market and is looking at a variety of additional development and acquisition opportunities. The company doesn't have anything else under contract at this time.

Ware Malcomb's team in Tempe is the project's architect. A general contractor will be selected later this year. A Colliers International Inc. team in Phoenix will prelease and market ProLogis Park Riverside. Colliers senior vice presidents Don MacWilliam and Payson MacWilliam brokered the land transaction.