Seefried Industrial Properties and a real estate fund advised by Crow Holdings Capital have sold 500 W. Pinnacle Peak Road, the joint venture partners’ recently completed industrial building totaling approximately 145,500 square feet in Phoenix.
With the advisement of Cushman & Wakefield, the partners sold the 100 percent leased, last-mile fulfillment/distribution facility to Stonemont Financial Group in a transaction valued at $74.7 million.
Located on a nearly 35-acre site in Phoenix’s Deer Valley submarket, 500 W. Pinnacle Peak is leased in its entirety to Amazon. Layton Construction served as the general contractor for the Ware Malcomb-designed building, which features 13,000 square feet of office and breakroom space. Additionally, with more than 1,080 spaces for delivery vans and employee vehicles, the property provides an atypically high parking ratio.
Cushman & Wakefield’s Will Strong, Kirk Kuller, Greer Oliver and Connor Nebeker-Hay represented Seefried and Crow Holdings in the sale transaction.
The real estate cycle favorite
Investors spent more than $100 billion on industrial properties in the first 10 months of 2021, according to a Real Capital Analytics report, and while high transaction activity had something to do with the figure, the hefty price tags were predominantly responsible.
“Industrial prices rose 18.9 percent in October from a year ago and 1.9 percent from September, the fastest annual and monthly rates among the major property sectors,” according to the Real Capital Analytics report.
In October, I-215 Commerce Center, an approximately 225,400-square-foot warehouse in Colton, Calif., changed hands for $57.5 million, marking one of the highest prices per square foot for industrial space in San Bernardino County year-to-date. And 400 National, a roughly 290,200-square-foot delivery facility leased to Amazon in Simi Valley, Calif., sold for $128 million, or more than double the market’s average price per square foot. Judging by the price per square foot on the 500 W. Pinnacle trade, it appears as though the final months of 2021 will offer more of the same in the way of high-priced logistics assets.
