IndiCap, Invesco Break Ground on 1.5 MSF Phoenix Spec Project

Rendering of Virgin Industrial Park. Image courtesy of IndiCap

IndiCap, in a joint venture with Invesco Real Estate, has broken ground on Virgin Industrial Park, a five-building, 1.5 million-square-foot industrial project in Waddell, Ariz. Phase I is slated for completion in the first quarter of 2024, while Phase II will break ground in the third quarter of this year.

The development team includes Graycor Construction, which serves as general contractor, and Deutsch Architecture Group as project architect. The first phase will encompass three buildings of 566,121 square feet, 244,958 square feet and 213,765 square feet, respectively. The second phase will include two facilities totaling 532,479 square feet.

READ ALSO: Top Sectors for Industrial Demand: JLL

The speculative development of Virgin Industrial Park was first announced in July 2022. By the end of the year, IndiCap and Invesco secured an $88 million loan for the construction of Phase I, provided by Citizens Bank National Association, CommercialEdge data shows.

Upon completion, the industrial buildings will feature between 32- and 36-foot clear heights, ESFR sprinkler systems and 3,000 amps of power. The campus will include a total of 265 dock-high doors, 20 grade-level doors, 167 trailer stalls and more than 2,200 auto parking spaces. JLL Executive Managing Director Marc Hertzberg, Managing Director Riley Gilbert and Associate Kelly Royle are the property’s exclusive leasing agents.

The 110-acre development site is less than 30 miles from downtown Phoenix at the northwest corner of Olive and Reems roads, within the Loop 303 industrial corridor. Companies in the surrounding area include Amazon, Walmart, FedEx, UPS, Red Bull and XPO Logistics, among others.

Phoenix in the lead for industrial development

With nearly 54.1 million square feet under construction as of February, Phoenix is still leading the industrial development across the U.S., according to a recent CommercialEdge report. The market’s pipeline accounted for 15.6 percent of stock, way higher than the national rate of 3.7 percent; Dallas-Fort Worth (6.7 percent) and Charlotte, N.C., (5.8 percent) followed.

The report also indicates that manufacturing plays a significant role in The Valley’s industrial development, as it accounts for 12.5 million square feet or 23.1 percent of the total. Semiconductor facilities, such as Taiwan Semiconductor Manufacturing Co.’s multibillion-dollar plant, represent a big share of the new manufacturing space.

Since the beginning of 2023, several major projects broke ground in Phoenix, including the first phase of a 7 million-square-foot industrial campus in Goodyear, Ariz. Lincoln Property Co. and Harvard Investments are behind the phased project.

Last month, SkyPlus Developments started construction on a 250,000-square-foot facility within the SkyBridge Arizona master-planned development. Upon completion, SkyBridge will encompass a total of 3.8 million square feet.

Planned and prospective projects are also a big part of the metro’s pipeline, amounting to a whooping 35.3 percent of total stock. One of these projects pertains to the development of a $5.5 billion battery manufacturing complex that will break ground later this year.