Logistics Property Co. Breaks Ground on Its 1st Phoenix Project

Palm Gateway Logistics Center groundbreaking. Image courtesy of Logistics Property Co.

Logistics Property Co. has broken ground on its first metro Phoenix industrial project.

Palm Gateway Logistics Center is a four-building, 615,000-square-foot speculative development taking shape in Mesa, Ariz. Public records show the developer is financing its construction with a $62.9 million loan from Old National Bank.

Palm Gateway is one of several development projects pertaining to LPC Logistics Venture Two LP, the firm’s second develop-to-core fund, with total equity commitments of $1.8 billion.

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According to Maricopa County records, Logistics Property acquired the 38-acre development site for nearly $21 million in September. Alcorn Construction is the project’s general contractor and Ware Malcomb served as architect, while SWS Engineering will oversee civil engineering. Delivery is expected in the fourth quarter of 2023.

A Colliers team handles all leasing activity at Palm Gateway. The developer expects the park’s first tenants to take occupancy by the first quarter of 2024, according to Phoenix Business Journal. When fully leased, the new industrial campus could bring up to 1,000 new jobs to the area.

CommercialEdge data shows nearly 11 million square feet of industrial space were under construction in Mesa as of January. One of the ongoing projects, developed by IndiCap and AECOM-Canyon Partners, is set to comprise 1.6 million square feet across 10 buildings.

Project details

Upon completion, Palm Gateway’s buildings will range from 92,847 to 289,203 square feet and feature 36-, 32- and 28-foot clear heights. The property will feature LED lighting systems, ESFR sprinklers and ample parking.

The logistics campus is taking shape within Pecos Advanced Manufacturing Zone, at the intersection of South Sossaman Road with East Pecos Road. Situated near State Route 202 and Interstate 10, the location is 2 miles from Phoenix-Mesa Gateway Airport and within 30 miles of Phoenix Sky Harbor International Airport.

Colliers Senior Executive Vice President Paul Sieczkowski, Associate Vice President Justin Sieczkowski and Associate Mallory Wayne are the project’s leasing agents. The team also worked with Logistics Property Co. on the acquisition of the development site.