Commercial real estate developer Trammell Crow and real assets investment firm CBRE Investment Management (CBRE IM) have acquired a nearly 200-acre site in Mesa, Arizona, with plans to prime the site for rail-served industrial development.
The 192-acre site — the largest developable site in Maricopa County, according to developers — will be divided into “shovel-ready” lots that range from 12 acres up to the full site. Companies seeking large-scale sites for industrial development, such as those in the semiconductor industry, could be among those interested in the site.
Union Pacific (NYSE: UNP) serves the site, and the railroad is planning to complete an extension by the end of 2023 that would facilitate access between the property and the railroad. The site is also a quarter of a mile away from the extension of State Route 24.
Trammell Crow said when it typically acquires a site, it has a project in mind or an identified user already in place. But in this acquisition, Trammell Crow and CRBE IM are functioning like the Class I railroad companies that own rail-served properties primed for industrial development.
CBRE IM was involved in the transaction on behalf of a separate account client. CBRE IM is a partner in this joint venture.
“Users of that scale typically need specific build-outs and accommodations, making the concept of a shovel-ready development site more appealing than having to source, acquire and prepare land on their own for development,” Trammell Crow told FreightWaves.
“Despite the uncertainty about the overall economy and the industrial sector in the U.S., the market fundamentals for the Phoenix industrial sector remain strong, with historically low vacancy rates and continued demand for new space carrying through the end of Q4 2022,” Trammell Crow Principal Ryan Norris said in a news release. “The Southeast Valley was one of the most active submarkets at the tail end of last year, due in part to the area’s abundant labor pool, and we are still seeing strong activity as we enter the second quarter of 2023.”
At the site, the two companies anticipate performing horizontal improvements such as extending utilities and building out roadways.
“We’re excited to partner with Trammell Crow to provide this unique, flexible development solution that can serve a variety of industrial users in search of modern industrial space in this key, growing submarket. We believe that the continued high demand for logistics and industrial real estate, the location’s convenient proximity to major transportation nodes and Trammell Crow’s extensive experience in customizing and delivering top-of-the-line properties will offer long-term value for both future occupiers and our client,” said Mary Lang, head of Americas direct logistics strategies for CBRE IM.
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