PHOENIX-Marking its second land buy in six months, ProLogis doubles its land holdings to enlarge ProLogis Park Riverside to 155 acres with a 2.4-million-sf build-out in West Phoenix. The acquisition pushes ProLogis' all-in development tag to $140 million.
ProLogis' just-bought land is located at the southeast corner of West 55th Avenue and West Lower Buckeye Road from locally based Cowley Cos. Inc. Tyson Chave, ProLogis' vice president and market officer in Phoenix, says the extra acreage provides flexibility for the developer to incorporate larger buildings into the park.
"We can be more creative on 155 acres versus 78 acres," Chave says. He explains that it wasn't ProLogis' intent to buy a lot of land when it acquired the first parcel in June from Newport Group. "When we initially closed on the first parcel, the remainder was tied up in another contract," he tells GlobeSt.com. When it fell out of escrow, Chave says ProLogis didn't hesitate. "With that land being located immediately adjacent to our site, we thought we could create a larger master-planned environment," he says.
Although the parcel is larger, the timeline hasn't shifted at all. ProLogis still plans to begin construction early next year on the first phase: two spec distribution centers totaling 647,000 sf.
Chave says ProLogis Park Riverside mainly will be speculative development, with build-to-suits welcome too. Market demand set the pace for additional phases.
ProLogis still is working through the approval process for the plan, but Chave says there's been a lot of active interest in the site. "We've been talking to a couple of different groups that are candidates for the project," he continues. "But with the timing still being a handful of months away, nothing is ready to be announced."
Don MacWilliam and Payson MacWilliam, senior vice presidents of Colliers International Inc.'s Phoenix office, represented ProLogis in the land transaction and will lease ProLogis Park Riverside. Gary Tenney, a Colliers' senior vice president in Phoenix, represented Cowley.
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