Contour JV Obtains $99M Loan for Phoenix-Area Project

A joint venture led by Contour, of Costa Mesa, Calif., has received $99 million in construction financing for the five-building first phase of the Sossaman Park 202 industrial campus in Mesa, Ariz. JLL arranged the financing on behalf of the borrower.

The four-year, floating-rate loan for the 828,718-square-foot development was provided by Pacific Western Bank.

The 108.9-acre site is at the southwest corner of Sossaman Road and Warner Road in the Phoenix submarket of Chandler North/Gilbert.

Sossaman Park 202. Image courtesy of JLL

Upon completion, the project will comprise a mix of light industrial, warehousing and distribution buildings ranging from 130,318 square feet to 198,782 square feet. Each will offer two grade-level doors, between 25 and 41 dock-high doors, 50- x 52-foot column spacing and 32-foot clear height throughout.

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Sossaman Park 202 will be built in two phases, with the second phase expected to include three additional buildings totaling about 722,000 square feet. A portion of the $99 million in loan proceeds were used to fund the sponsor’s acquisition of the Phase II land.

The site is 30 miles from Phoenix Sky Harbor International Airport and only 2.5 miles from Phoenix-Mesa Gateway Airport. The latter is the nation’s only joint cargo hub, served by both U.S. and Mexican custom agents and allowing for the expedited shipment of goods.

In addition, the project is adjacent to Loop-202, Phoenix’s main regional arterial, and connects to I-17, I-10 and Highway 60.

The JLL Capital Markets team representing the borrower was led by Senior Managing Director Jeff Sause, Managing Director Todd Sugimoto and Associate Wyatt Strahan, with local support provided by Director Jason Carlos.

In a prepared statement, Sause commented that Pacific Western Bank “held deal terms negotiated in April through a very volatile market.”

Records on top of records

With a record 36 million square feet of industrial space on track to deliver by year’s end, the Phoenix metro is nationally now second only to Dallas for industrial construction, according to a second-quarter report from Kidder Mathews.

Rental rates, too, have hit a record level, of $0.73 per square foot, triple net. And metro-wide availability has fallen to its lowest ever, at 8.1 percent.