BGO Buys 1 MSF Logistics Center for $118M

BGO has acquired Paloma Vista Logistics Center – Building 1, a Class A warehouse and distribution building in Buckeye, Ariz., on behalf of an institutional investor. US Capital Development and funds managed by Ares Management sold the 1 million-square-foot asset for $118.3 million, according to public records.

Amazon fully occupies the property, CommercialEdge data shows. Located at 18900 W. McDowell Road in Phoenix’s flourishing Southwest Valley submarket, the project was completed in March and covers more than 60 acres.

The property is near Interstate 10 and the AZ 303 Freeway, within six hours of the Los Angeles and Long Beach Ports. It includes a 40-foot clear height, multiple points of ingress/egress and 190-foot maneuverability, among other features.

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Will Strong, Michael Matchett and Molly Hunt of Cushman & Wakefield’s National Industrial Advisory Group represented all parties in the transaction. Andy Markham, SIOR, Mike Haenel and Phil Haenel provided leasing advisory and will continue to handle the project’s leasing services.

Phoenix has benefited from its strategic location, pro-business attitude and continued population growth, Josh Tracy, senior vice president of real estate development at Ryan Cos., told Commercial Property Executive.

“These factors, combined with the tailwinds from onshoring and nearshoring, have allowed Phoenix to rise to the top of the list for large domestic and industrial companies,” Tracy said.

Cushman & Wakefield’s third-quarter 2024 report reveals a rise in occupancy of more than 7 million square feet year-to-date in the Southwest Valley. That growth outpaces every submarket in the metro area by a significant margin.

The Paloma Vista Center is part of a master-planned industrial park. A recently completed 423,000-square-foot building is adjacent to the property, and a 1.2 million-square-foot project is planned for the second phase. Upon completion, the industrial park is set to include a combined 2.7 million square feet.

An active industrial market

In September, LaSalle Investment Management acquired Buckeye85, an industrial building in Phoenix, on behalf of LaSalle Property Fund. The sellers were Lincoln Property Co. and Goldman Sachs, according to CommercialEdge data. The 321,892-square-foot warehouse was completed in 2023 and is fully leased to Tempur-Pedic, which uses it as a distribution center.

In October, Logistics Property Co. finished constructing its first industrial development in metro Phoenix. Palm Gateway Logistics Center is a 615,000-square-foot, four-building spec project in Mesa, Ariz.