Developer Gets Last Parcel for 1M-SF Plan

CHANDLER, AZ-A 38.06-acre closing for $6.5 million has completed a summer-long 93-acre land grab by Harsch Investment Properties of Portland, OR. The company has spent $18.6 million to assemble a development site near Chandler Airpark for 1.2 million sf of industrial mixed-use space.

Paul Sieczkowski, vice president for Colliers International Inc.'s Phoenix office, says ground will break on the first phase in mid-2007. Delivery is slated for early 2008.

Sieczkowski says the amount of spec flex, industrial and distribution space that will be built in the first phase is undetermined at this point. "They'll be building initially on one of the 10-acre parcels," says Sieczkowski, who teamed with Colliers' Rob Martensen to represent the buyer. "Their MO is to attract the guy who is growing out of his house and who needs more space so they'll offer space from 2,500 sf to 10,000 sf or 12,000 sf at a time."

A development budget isn't available, but Sieczkowski says general construction costs can run from $45 per sf to $60 per sf for shell space. Harsch is designing the project. The general contractor has yet to be selected.

Harsch had once owned land in the area, selling it some years ago. Sieczkowski tells GlobeSt.com that Harsch liked the area around the Chandler Airpark, primarily for its proximity to the San Tan Freeway-Loop 202. "There isn't a whole lot left out there, unless you want a resale," he says. "Everyone else is jumping the plank and getting out there. Now you can't buy land any more out there."

Harsch's recent acquisition at Ryan and McQueen roads was from Ray Property Ventures LLC in Phoenix. Harsch also acquired two 10-acre parcels from Phoenix's Palo Verde Associates; one at Ryan Road and Stearman Drive; and another along Cooper Road north of Queen Creek Road. The assembly included 34.54 acres of rail-served land at Queen Creek Road were bought from Queen Creek XXXV LLC in Scottsdale.