Developer enters Phoenix market with new infill industrial project

Developer enters Phoenix market with new infill industrial project

Article Originally Posted by PhoenixBusinessJournal on September 22, 2022

Dallas-based Provident Realty Advisors, a private real estate investment firm, plans to build its first industrial facility in Arizona on a prime infill parcel along Grand Avenue in the West Valley.

The agricultural site is located at 6550 W. Orangewood Ave. near the northeast corner of 67th and Orangewood avenues about halfway between the Loop 101 and Interstate 17.

Provident said it plans to develop a 302,400-square-foot speculative warehouse and distribution facility on the 16-acre site. The firm purchased it for $7.5 million on Sept. 20 from the Maricopa County Regional School District, real estate database Vizzda shows.

Construction on the facility is expected to begin in the first half of 2023 with a completion date of early 2024. The facility will feature 36-foot clear heights, about 61 dock doors, a 185-foot truck court and 86 trailer parking spaces.

The architect is Powers Brown Architecture, the civil engineer is Hunter Engineering and the general contractor has yet to be selected. Provident said it doesn't have any tenants yet but has a couple of prospects.

Case Van Lare, Chris Martin and Cavanaugh Adams led the sale for Provident Realty Advisors. John Werstler, Cooper Fratt and Tanner Ferrandi are the leasing brokers for the planned facility.

Provident said it's currently pursuing sites across the Phoenix metro but was attracted to this specific parcel because of the infill opportunity and since the site was already zoned for industrial uses.

"The site configuration is a perfect rectangle which makes it very efficient and allows for us to maximize coverage," said Martin, an associate with Provident, in an email. "There are limited needs for improvement to the surrounding infrastructure. The city of Glendale is generally pro-business and easy to work with. It is about as easy of a site to develop as they come."

Martin said that the area also has one of the strongest labor bases in the Valley, which he said will be an advantage for the facility's potential tenants. The company also picked the site because of a general lack of competition in the area compared to other industrial cores such as the Loop 303 or East Valley submarkets, Martin said.

The company also expanded into the Phoenix market because of the business-friendly environment, population growth and "strong" industrial real estate fundamentals, Martin added.

"As the cost of occupancy continues to grow in south California for industrial tenants the Phoenix market is going to look more and more attractive," he said. "Phoenix is on the top of our list for strategic expansion markets, and we are aggressively pursuing other opportunities in the Valley. Our hope is that PRA becomes a permanent fixture in the industrial real estate community in Phoenix.