The Phoenix Office of JLL announced that it has signed the final lease at KV Casa Grande, bringing the newly constructed, Class A Central Arizona industrial development to fully leased. A project by Kentwood Ventures, KV Casa Grande’s leasing pace reflects a rising demand for Class A industrial space in outlying submarkets as metro Phoenix industrial activity continues to expand.
Totaling 314,453 square feet in a single industrial building, KV Casa Grande is one of the first modern, fully speculative projects to deliver in Casa Grande. It sits on 18 acres at 1550 W. Lawrence St., less than one hour southeast of central Phoenix.
With the latest lease brokered by JLL, KV Casa Grande is fully occupied by four tenants. A Fortune 100 healthcare manufacturer anchors the project with 148,296 square feet. HVAC distributor American Refrigeration Supplies Inc. preleased 50,000 square feet before construction was complete, and plastic container manufacturer Graham Packaging leases 49,537 square feet. Arizona-based freight company A to Z Destinations was the final tenant to sign, leasing 66,803 square feet.
“We built KV Casa Grande on spec because we believed in Central Arizona’s growing role in the state’s industrial ecosystem, its demand and its needed supply,” said Kentwood Ventures Principal Jim Zemezonak. “We enjoyed strong activity from the start and achieved a fully occupied property within the same timeline any similar project in Maricopa County would. That confirmed the demand for high-quality, forward-looking Arizona industrial space in areas that fall outside of Phoenix’s industrial center. It has empowered KV Casa Grande and more than validates our development thesis.”
Built to institutional quality standards, KV Casa Grande features 32-foot clear height, 33 dock-high doors, 12 grade-level doors, ESFR sprinklers, LED lighting, a 185-foot concrete truck court and 6,000 amps of power.
It is the fourth development by Kentwood Ventures in Arizona, which also developed KV Buckeye, a 249,600-square-foot, two-building industrial complex in Buckeye, Arizona, a 100,000-square-foot complex in Flagstaff called Flagstaff Innovation Park, and Kentwood 303, a 272,000-square-foot industrial/flex development in Glendale, Arizona. Both projects were sold to institutional investors.
JLL Vice Chairman Anthony Lydon, Executive Managing Director John Lydon, Executive Vice President Hagen Hyatt, and Vice President Kelly Royle are the exclusive leasing brokers for KV Casa Grande.
“Casa Grande has become a natural fit for companies supporting the major industrial users moving into metro Phoenix,” said Hyatt. “It offers roughly the same drive time from Sky Harbor as Buckeye, while providing closer access to Tucson, San Diego and Mexico, and keeping Los Angeles and the Inland Empire in easy reach. Companies are recognizing the strategic value of that location, coupled with a lower cost of doing business, and the result has pushed industrial vacancy rates to virtually zero.”
Pinal County is Arizona’s fastest-growing county. It is strategically positioned between Phoenix and Tucson, with an employer base that draws workers commuting from both metro areas, and typical home values that fall approximately 22% below Phoenix.
KV Casa Grande capitalizes on these advantages, as well as a location that is within minutes of Interstates 10 and 8, and proximate to other major manufacturers and suppliers including Air Products, Kohler, Frito-Lay, Lactalis and others.
An additional 19 acres remains at the KV Casa Grande site, where Kentwood Ventures anticipates it will develop a second phase of the project.
In Phoenix, JLL is a market leader employing more than 600 of the region’s most recognized industry experts offering office, industrial, retail, healthcare and data center brokerage, tenant representation, facility and investment management, capital markets, multifamily investments and development services, and related services within the real estate leasing, investment and management process.
