Former Phoenix semiconductor manufacturing site to be redeveloped

Former Phoenix semiconductor manufacturing site to be redeveloped

Article Originally Posted On Phoenix Business Journal On May 13, 2021

A former Phoenix Motorola manufacturing facility was sold and will be redeveloped for industrial or data center uses.

Chicago-based Baker Development Corp. bought the 28.4-acre parcel at 1110 N. 52nd Street in Phoenix from Reich Brothers for $10.25 million, according to real estate database Vizzda. Baker Development plans to build 800,000 feet of data center space or a 400,000-square-foot, Class A industrial project on the site. The project will be completed in 2022.

John Werstler, Cooper Fratt and Tanner Ferrandi of CBRE represented both the buyer and the seller in the deal.

“Being located adjacent to SRP’s Pico substation makes this project extremely attractive to data center users,” Werstler said in a statement. “In addition, the desirable northeast Phoenix demographics, high demand for Class A inventory, immediate access to the full interchange at Loop 202 & 52nd Street and high-brand visibility to the expressway makes this location extraordinary.”

Baker Development is also the developer of VB/143, a two-building industrial development in Goodyear that totals 325,000 square feet. The company is also developing VB/Yuma, which is also in Goodyear. That project is under construction and is scheduled to be complete this year.

Demand for data centers has outpaced supply in the Valley, but developers do have plans to build more data center capacity. According to JLL research in March, the Valley has an inventory of 326.7 megawatts of data center space, only 31.1 of which is vacant. However, companies have plans to add another 250 megawatts, nearly doubling the supply.