Cresset, Clarius Buy 98 Acres for Phoenix-Area Project

303 Crossroads. Image courtesy of Cresset Real Estate Partners and Clarius Partners

Cresset Real Estate Partners and Clarius Partners have closed on the land acquisition for 303 Crossroads, a nearly 1.8 million-square-foot logistics development on a 98-acre site in Glendale, Ariz. Groundbreaking is scheduled for this October.

The project is set to consist of two buildings in separate phases on land fronting Loop 303 and Northern Parkway. The first will encompass a little over 1 million square feet and is scheduled for completion in 2022. Building two will be 734,800 square feet and is slated for a 2023 completion.

Targeting e-commerce, distribution and warehousing users, both buildings will include cross-dock configurations, 40-foot clear heights and above-market parking ratios, as well as direct frontage on both Loop 303 and Northern Parkway.

The project team includes Butler Design Group, Hunter Engineering, Layton Construction and CBRE.

Hot market in the Valley of the Sun

Metro Phoenix has set a record for new industrial development, with 18 million square feet now underway, 16.4 million of it warehouse/distribution space, according to a second-quarter report from JLL. Meanwhile, net absorption has been outrunning deliveries, and total vacancy fell 70 basis points from the first quarter, to 7.6 percent.

In March 2020, Cresset and Diversified Real Estate Capital closed the Cresset-Diversified QOZ Fund, their first Qualified Opportunity Zone fund, at $465 million in total capital commitments. The companies promptly began work on a follow-on QOZ fund.