Three Projects Land in New Business Park

CHANDLER, AZ-Three more companies have stepped up for land in the 54-acre First Chandler Business Park. In all, 15 acres have been sold for nearly $6 million for unrelated industrial projects.

Wax Properties Inc. of San Diego is planning a 100,000-sf distribution center on a 10.69-acre tract that it got for $4.15 million. Phoenix firms Black Hat One LLC and Tibshraeny Cos. Inc. each bought 2.2 acres for spec projects, adding a total $1.8 million to the till for the park's owner, Chicago-based First Industrial Realty Trust. Black Hat One is planning a 20,000-sf building while Tibshraeny will develop a 24,000-sf structure. Across the board, construction will cost $50 per sf to $60 per sf, according to Kevin Cosca, vice president with CB Richard Ellis' Phoenix office.

"We knew we'd have a successful project because of limited land in the Southeast Valley," says Cosca, who with CBRE's Paul Wentis represented First Industrial in the recent transactions. First Industrial acquired the 54 acres at the intersection of Germann Road and Stearman Drive in December 2005. It's now down to five acres to sell.

Cosca tells GlobeSt.com that the land has been snapped up, even without developed streets or infrastructure although it's about to get under way soon. "We're selling, at this point, paper lots without improvements," he says. He adds that, in addition to high demand, the park's location near Chandler Municipal Airport has been a major selling point.

Luke Walker, first vice president with CB Richard Ellis in Phoenix, credits the price and location as being the dealmakers for Wax Properties' decision to buy and build in First Chandler Business Park. "They were comfortable with the land's cost and were happy with the freeway expansion and its proximity to the rest of the Valley," he says. Wax Properties' CBRE team included Bryan Taute and Holly Lorant. The Black Hat One and Tibshraeny sales were direct deals.