Evergreen Devco, Inc., a leading retail, multifamily and industrial development company, announced a significant expansion to its industrial business line with the acquisition of 12.68 acres at the southeast corner of 48th Street and Alameda Drive in Tempe, Ariz., for $13.0 million.
The future development, to be called 48th @ Alameda, is strategically located in the Airport submarket of Phoenix and involves two key sites. Located at 2727 South 48th Street , the site is currently housing a vacant two-story office building, this site will be redeveloped to construct two speculative industrial buildings totaling 171,025 square feet and an adjacent outdoor storage area. The second is at 2530 West Campus Drive and is presently an auxiliary parking lot, this area will be converted into 65,578 square feet of industrial outdoor storage space.
The Airport submarket boasts one of the lowest vacancy rates in the Phoenix Metropolitan Statistical Area (MSA) at just 3.9%, compared to the valley-wide average of 10.1%, according to CBRE. The site’s infill location, coupled with high barriers to entry in the Airport area, makes it a rare find.
“This acquisition allows us to further expand our new Industrial Business Line by constructing shallow bay industrial products in an impeccable infill location,” said Brian Dietz, Vice President of Industrial development at Evergreen Devco. “Unlike many infill industrial redevelopment sites located in older industrial neighborhoods, 48th @ Alameda will be situated in a relatively upscale area.”
Key amenities nearby include the Los Angeles Angels spring training facility, a class A office park, the four-star Marriott Phoenix Resort Tempe at the Buttes, and as well as proximity to the I-10 freeway and Sky Harbor International Airport.
Dietz, the leader of Evergreen’s industrial business line, adds “This acquisition exemplifies Evergreen Devco’s dedication to creating innovative real estate solutions that meet market demands. Adding 48th @ Alameda to our portfolio allows us to deliver exceptional properties that stand out from traditional offerings.”
Evergreen Devco started its Industrial Development platform in 2021. 48th @ Alameda will join Evergreen’s Arizona industrial projects, including The Landing at Falcon Field, a new 33-acre business park in Mesa, and a 9.4-acre site located northeast of the intersection of Litchfield Road and Desert Cove Road in Surprise, along with two other projects in Colorado.
Jim Wilson with Cushman & Wakefield will be listing the project for sale or lease. “48th @ Alameda is the perfect redevelopment conversion from an outdated, functionally obsolete office building to a first class, institutional quality, multi-tenant industrial project” said Wilson.
