San Francisco-based commercial real estate investment firm Graham Street Realty (GSR), an affiliate of Hamilton Zanze, has acquired Cimmaron Industrial Park in the Scottsdale Airport Industrial submarket of the Phoenix metro area. The deal closed on August 26, 2022, for a purchase price of $27.5 million. The property is currently fully leased.
GSR is purchasing the property from a partnership of two high net worth investors. As part of the transaction, GSR will retain the in-place property management company, Greater Airpark Realty Services (“GARS”). GARS will handle day-to-day operations, construction management, and property accounting.
Cimmaron comprises 94,800 rentable square feet of industrial space across a five-building, separately parceled project site totaling 6.73 acres. All five buildings were constructed in 1980 and have been well-maintained. The property provides small businesses with class-leading, functional industrial suites, with approximately 40% office and showroom space and 60% warehouse space.
Cimmaron is located in one of the most affluent, supply-constrained submarkets in the greater Phoenix MSA – the Scottsdale Airpark. The submarket comprises 7.1 million square feet and currently boasts the highest asking rents in the entire 363-million square foot Phoenix industrial market.
The Scottsdale Airpark is proximate to some of Arizona’s wealthiest communities, including Paradise Valley, Kierland, and North Scottsdale. The concentration of high-end housing in and around Scottsdale drives much of the leasing activity in the submarket and at the property. The Scottsdale Airport is one of the busiest private airports in the United States and is another driver of regional business.
“The Graham Street team is excited to claim our first acquisition in the state of Arizona with Cimmaron Industrial Park,” said GSR’s Director of Investments Jay Snover. “The property fits our objective of purchasing real estate in irreplaceable, supply-constrained locations. We also look forward to building our relationship with Shell Commercial, Greater Airpark Realty Services, and CBRE further in the years ahead.”
This acquisition marks Graham Street Realty’s first acquisition in Arizona and marks the firm’s fourth industrial acquisition to-date.