CIM Group Buys Phoenix-Area Industrial Asset

Goodyear Airport 85. Image courtesy of The Opus Group

CIM Group has added another asset to its metropolitan Phoenix portfolio with the acquisition of Goodyear Airport 85. The real estate owner and lender recently purchased the approximately 276,200-square-foot facility from The Opus Group, developer of the newly delivered speculative warehouse, for an undisclosed price.

Opus developed Goodyear Airport 85 in a joint venture with a capital partner on a vacant site near Main Central Road 85, a relief road for Interstate 10, which provides a direct link to The Port of Los Angeles and Long Beach in Southern California.

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Through its subsidiaries, Opus served as contractor and architect for the project, and transformed the 19-acre parcel at 1685 S. Litchfield Road near Phoenix Goodyear Airport into a state-of-the-art industrial property featuring 36-foot clear height, 48 dock doors, as well as a 190-foot all concrete truck court. The project reached completion in the third quarter of 2021.

CIM’s acquisition of Goodyear Airport 85 comes on the heels of the company’s purchase of another premier industrial asset in Goodyear, the 460,600-square-foot facility at 2250 S. Litchfield Rd. CIM bought 2250 S. Litchfield, located adjacent to the Phoenix Goodyear Airport, from Opus in a $56 million transaction.

These two, brand new, state-of-the-art properties in Goodyear, near the airport and connected to the area’s major transportation corridor, expand CIM Group’s portfolio of top industrial facilities strategically located to meet the ongoing demand for quality warehouse space, Shaul Kuba, co-founder & principal, CIM Group, said in a prepared statement.

Fueling the Phoenix-area industrial market

It’s a prime time to buy industrial product in Phoenix, whether the asset is leased or still awaiting its first tenants. The Phoenix industrial market is firing on all cylinders and logging record numbers, including its lowest-ever vacancy rate, 4.2 percent, in the third quarter of 2021, according to a report by CBRE Group, which spearheaded the marketing of Goodyear Airport 85 under Opus’s ownership.

Additionally, at more than 15.1 million square feet of positive net absorption year-to-date at the end of the third quarter, the market had already reached its highest positive net absorption ever recorded in one year within only nine months’ time.

The long-term outlook in the Valley is sunny as well. “The Phoenix industrial market continues to outpace other metros on market fundamentals—job growth, population and affordability. These fundamentals will continue to draw users from outside of the metro as well as market expansions with close to 21 million square feet of users currently looking for space in the Phoenix market,” according to the third quarter 2021 CBRE Group report.