(Read more on the industrial market.)

PHOENIX-A Champaign, IL-based developer has acquired 37 acres to develop up to 500,000 sf of build-to-suit industrial buildings. The Southwest Valley land has cost $8.2 million.

“They liked the location,” explains Gary Anderson, first vice president with locally based Grubb & Ellis/BRE Commercial LLC. “It’s in the Riverside Tax District and it’s near the future 202 loop that’s on track to connect with I-10. It’s a good location for industrial-type users interested in the area.” Becknell Development LLC has bought the land from a local investment group, 59th Ave. & Lower Buckeye LLC.

Anderson says another benefit to the land at 59th Avenue and Lower Buckeye Road is that it’s in an area with high barriers to entry. Much of the land in the area is under the control of portfolio developers. He and Tony Lydon, a senior vice president for Grubb & Ellis/BRE, will market the land piecemeal for turnkey projects.

“If a corporate user comes in, they’ll develop it on a turnkey basis and lease it back to him,” Lydon tells GlobeSt.com. He says lease rates will depend on the size and scope of the product.

Becknell acquired five acres several years ago in Tolleson to develop warehouse distribution space and two years ago picked up a 105,107-sf, single-tenant manufacturing and distribution facility in the southwest submarket. “They’re not actively trying to expand their footprint here,” Anderson says. “They just had an opportunity here to do a build-to-suit in Phoenix. That’s what they like to do.”

The Southwest Valley’s vacancy rate is just 6.4% in the 102.4-million-sf inventory. However, there is 5.3 million sf under construction.

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