MDH Partners Buys Phoenix Asset for $51M
Kentwood Ventures sold the recently completed industrial campus.
MDH Partners has acquired KV Buckeye 10, a 249,000-square-foot Class A industrial property in Buckeye, Ariz., for $51 million. Kentwood Ventures sold the asset, with JLL brokering the transaction on its behalf.
The campus, which came online last year, consists of two buildings spanning 115,200 and 134,300 square feet. Features include a 170-foot truck court, 535 parking spaces, expandable loading doors—of which there are 34 including both grade-level and truck wells—and 28-foot clear heights, as well as 56-foot bay spacing.
Tenants include the City of Buckeye, which relocated some City Hall functions to the property, Hajoca Corp., Safelite and AVI-SPL. The park was 60 percent leased at the time of sale, according to JLL.
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Located at 945 N. 215th Ave., the property is less than 1 mile from Interstate 10, while the Phoenix-Goodyear and Buckeye Municipal airports both operate some 12 miles away. Downtown Buckeye—the fastest-growing city in the U.S. between 2017 and 2022, with population up 54.3 percent according to SmartAsset—is within 10 miles, while central Phoenix is 26 miles away.
JLL Investment Sales and Advisory Senior Director Greer Oliver and Associate Connor Nebeker-Hay led the team that spearheaded the transaction on behalf of Kentwood Ventures.
Trading industrial assets in Buckeye
In 2021, Buckeye City Council approved the single-family to business park district rezoning request filed by Kentwood for the park. Construction began one year later, with estimates at the time placing development costs in the $30 million ballpark.
That same year, BET Investments broke ground on the multi-phase Buckeye I-10 Logistics, a 2.2 million-square-foot industrial development located just under 1 mile from KV Buckeye 10. Phase one—a 641,906-square-foot facility—debuted last year and EQT Exeter acquired it for $60.1 million this April.
Another Buckeye transaction, which at the time broke the municipality’s record for industrial building sales, involved 10 West Commerce Park, an 860,602-square-foot distribution center. In 2022, Creation sold the asset for $130 million to a joint venture between Intercontinental Real Estate Corp. and an affiliate of Cohen Asset Management.
Phoenix industrial vacancy inches upward, inventory expands
The Valley of the Sun saw more than $1 billion in industrial sales year-to-date through June, with the average price per square foot clocking in at $165, above the $139 national average for the period, a recent CommercialEdge report shows.
As developers delivered 17.9 million square feet during the first half of 2024, metro Phoenix’s industrial vacancy rate stood at 5.2 percent in June, showing a 150-basis-point increase year-to-date through June. The metro still has a substantial industrial pipeline, with more than 39 million square feet under construction, representing almost 10 percent of stock.
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