ATLAS JV Eyes Phoenix Industrial Project
Work on the campus will kick off in the third quarter.
ATLAS Capital Partners and Hawkins Development Co. are set to build a four-facility industrial campus in Mesa, Ariz. Construction is slated to kick off during the third quarter.
Dubbed ATLAS Exchange, the park will contain buildings ranging between 40,000 and 100,000 square feet.
The companies purchased the development’s 38-acre site from Brookfield Properties. Marking ATLAS’ largest land acquisition to date, the deal closed for $13.8 million. JLL brokered the sale and will also handle the project’s leasing efforts.
Located at 4140 S. Signal Butte Road, the development site is within Eastmark, a mixed-use development that is set to comprise more than 20 million square feet of commercial space and some 15,000 residential units, as well as 6,000 hotel rooms. Thoroughfares such as Loop 202 and U.S. Route 60, as well as Mesa Gateway Airport, are within 8 miles, while downtown Phoenix is about 34 miles northwest.
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The campus will feature large screened yards that will provide flexible storage and ensure easy circulation, catering to tenants in a wide array of industries. The facilities may rise with build-to-suit specifications. Additional amenities are set to comprise shaded ramadas and pickleball courts.
JLL Senior Managing Directors Pat Harlan and Steve Larsen brokered the land deal on behalf of both parties and are in charge of leasing negotiations.
ATLAS has developed and acquired more than $250 million in projects since its inception in 2020. Two years ago, the company set out to raise $100 million in equity commitments for an investment vehicle targeting industrial assets and development sites in the Sun Belt and Mountain West regions, with a strong focus on Arizona.
Phoenix’s slimming industrial pipeline
Metro Phoenix remained an industrial development stronghold, with 16.1 million square feet underway in February, ranking second nationally, according to the latest CommercialEdge industrial report. However, the pipeline shrank significantly from the 42.5 million square feet recorded in December 2023.
Yet, the market’s supply pipeline made up 3.7 percent of its total stock, more than double the 1.7 percent U.S. average. Among the construction projects in Phoenix is Mack Real Estate Group’s 305,400-square-foot development that’s set for completion by year-end. The capital stack included $63 million in debt issued by Bank OZK and PGIM.
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