SunCor To Plant 22-Year Hold With 18M-SF MXD

Although construction prices are always in flux, the Tempe, AZ-based SunCor is estimating the development will cost roughly $400 million or $200 per sf based on existing costs. SunCor is planning to develop 12.3 million sf of warehouse and distribution space and 1.3 million sf of light industrial. The developer also is planning 1.8 million sf of office, 1.3 million sf of flex office and 2.8 million sf of retail.

SunCor's first building is a 440,168-sf cross-dock warehouse, which broke ground at the intersection of Cotton Lane and Indian School Road. Mitchell Rosen, SunCor's director of office and industrial development, says the business plan always called for the first phase to be industrial, but the market timing is particularly good right now. "Just in the past few weeks, we had to pass on a user for a project because the building was too small," he says.

Harry Paxton, economic development director for the City of Goodyear, says putting warehouse product on the ground in that location is an excellent start for the project. "Much of that area surrounds the Luke Air Force Base. Warehousing fits really well in that area," he says. "Out of all the things in that area that are important, warehousing and distribution is what is providing more growth to the Phoenix market."

The West Valley has been a magnet for industrial tenants and development in recent years. However, Rosen tells GlobeSt.com that SunCor plans to conservatively develop Palm Valley 303, which is penciled for a two-decade build-out. A careful monitoring of the market, he says, will determine when and where the next groundbreakings will be.

SunCor acquired 10,000 acres from Goodyear Tire & Rubber Co. in 1986. Through the years, SunCor developed residential and retail on portions of the land. But, the Loop 303's push to the west and the widening of Interstate 10 to the south opened the door for SunCor. "We now have access to parts of the West Valley that didn't exist when we bought the land," Rosen explains. "That coupled with the tremendous housing influx means the area is ripe for commercial development."

Paxton says Goodyear historically has been a good, steady market for development. "In the past year, we've seen more and more press about Goodyear and its development," he says. "Developments have been in the works by the city and developers for years. But with I-10 widening and the 303 moving west, infrastructure is increasing opportunity for development."

Pat Feeney, senior vice president with CB Richard Ellis' Phoenix office, has the leasing assignment for the just-started warehouse. Mark Seale, a Phoenix principal for Lee & Associates, has been retained to lease the office component. Ed Beeh, senior vice president with Staubach Retail Group of Phoenix, will handle retail leasing.