"They do work for Walmart and Walmart mandates that suppliers have to be pretty close," says Pat Feeney with CB Richard Ellis' Phoenix office, who represented building owner ING Clarion Partners in constructing the lease. Though the specific lease consideration for this deal was not available, the quoted ask at the 581,038-square-foot building at 2592 E. Hanna Rd. is $.38 per square foot. Propak will move in during October.
Feeney tells GlobeSt.com that he and CBRE colleagues Dan Calihan and Rusty Kennedy worked on the deal with Propak for about 13 months. Part of the reason for the delay, he explains, is because Propak, which was represented by Bob Pielsticker in CBRE's Tulsa, OK office, was also signing simultaneous deals in other parts of the United States. Locally, "they were initially looking around southwest Phoenix because Walmart has a large facility in Buckeye (AZ)," Feeney adds. "That was another reason for the delay."
The 2008-built Arizona Distribution Center is part of the 185-acre Confluence, a master-planned industrial park. The Propak lease brings the occupancy to 48%, as Abbott Labs is another tenant in the building. Feeney says while tenant improvements are underway on Propak's space, the plan is to build a spec office suite in the southwest corner of the building.
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