"What was key for this buyer-user is the central location thatthe University Center offers. They're in a position where they canservice the entire valley," Tony Lydon, a senior vice presidentwith Grubb & Ellis/BRE Commercial in Phoenix, tells GlobeSt.comabout the purchase from SunState Builders Inc. of Phoenix. Locatednear the corner of University Drive and 14th Street, Airgas Westplans to break ground on a $1.5-million distribution facilityduring the second quarter and open the doors for business by year'send. The company has sold a smaller building along University Driveto help pay for the site.

The property's dense zoning also proved valuable in the deal,adds Lydon, since Airgas West's use requires more than mostindustrial users typically need. Airgas West requires a very lowfloor-area ratio. The project will include installation of severaloutdoor gas storage tanks.

Other users in the 34-acre University Center include the ArizonaDepartment of Motor Vehicles' emission testing center. The parksits directly adjacent to the City of Phoenix's Rio Saladoredevelopment zone, a 600-acre desert/river habitat area. Thecenter, developed 20 years ago, brought additional phases out abouttwo years ago. With some 40 million sf in the Sky Harbor submarket,industrial vacancies currently hover 12.5%.