Scannell Properties to Build 2 MSF Industrial Park Near Phoenix

Mesa Gateway 202. Image courtesy of Ware Malcomb

Indianapolis-based Scannell Properties is planning a nearly 2 million-square-foot industrial and office park on 166 acres near the Phoenix-Mesa Gateway Airport along with future build-to-suit properties and retail space at the project now known as Mesa Gateway 202.

The privately held real estate development and investment company received approval on Monday for its final subdivision plat from the Mesa City Council. Mesa’s Planning and Zoning boards signed off on the preliminary plat in February. Initially known as Warner Gateway 202, the site is on the south side of Warner Road between Loop 202 and Ellsworth Road. It is less than 2 miles from the airport.

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Phase 1 plans submitted to the city of Mesa call for nine buildings to be constructed on 123 acres of the site with about 1.8 million square feet of industrial space and approximately 100,000 square feet of office space. The industrial buildings range in size from 72,796 to 557,650 square feet. The site plan shows the industrial buildings will have truck dock areas as well as outdoor storage space on the back and sides of the buildings. Plans filed in December with the city show three build-to-suit sites and several smaller pads for retail that are listed as future developments.

Scott Moe, director of development, told Commercial Property Executive Buildings 1, 2 and 3 are under construction with shell completion expected in mid-December. Moe said leasing activity has been very strong and they should be able to announce full building users for Buildings 2 and 3 soon.

Moe said they are engaged in negotiations with two users to take all the area, about 30 acres, of the “build-to-suit” sites closest to Loop 202.

“We are selling the “shops” area to a local developer who is having solid activity and will soon be able to announce several prominent “national names” who will be occupying retail space in 2023,” Moe told CPE.

Ware Malcomb is the architect for the project. JLL Senior Managing Directors Steve Larsen and Pat Harlan and Managing Director Kyle Westfall are handling leasing.

Scannell, which focuses on build-to-suit and speculative developments of industrial, office and multifamily facilities throughout North America and Europe, acquired the property in July 2021.

The Phoenix Business Journal reported Scannell purchased the property for approximately $36 million from ViaWest Group, which sold the land on behalf of BD218 LLC, in one of the largest land sales in the southeast Valley in a decade. Members of BD218 LLC include the family trust of Phoenix Suns and Phoenix Mercury owner Robert Sarver and Steve Hilton, executive chairman & former CEO of Meritage Homes, according to the Arizona Corporation Commission.

Growing portfolio

Scannell first entered the Phoenix area in July 2020 when it broke ground on a 750,000-square-foot distribution facility in Buckeye, Ariz., for national retailer Five Below. Also in 2020, Scannell purchased a 94,552-square-foot freezer/cooler building in Tempe, Ariz., according to Moe, who previously told Commercial Property Executive the company made capital improvements to that property and sold it to an investor buyer in early 2021.

The developer is also planning Dobbins Industrial and Tech Park, a 240-acre site on the west side of the Loop 202 South Mountain freeway extension in the city of Phoenix. It would have a mix of uses, including light industrial, office, technology and manufacturing, and at least 3.5 million square feet of space built in several phases.

When Moe spoke to CPE in October 2021, the Dobbins project was being called Dove Ranch 202 Business Center. Moe told CPE that they were expecting to attract tech companies to both major projects because of a strong labor pool, great access, attractive park environments, good amenities and welcoming communities.

Scannell also developed a speculative industrial property in Glendale, Ariz., that broke ground in April 2021. Situated on a 50-acre site in Glendale’s Loop 303 Corridor, the 388,000-square-foot distribution and e-commerce warehouse was built by Clayco. A second phase was also planned for the site, with another 388,000-square-foot building.