Phoenix-based Cavco Industries Inc. bought 118,241-square-foot class A industrial building in Glendale from Trammell Crow Co. for $15 million.
The sale fetched the highest price per square foot for a vacant shell building, $130, in the history of the Valley’s industrial market, according to data from CBRE Group Inc.
Cavco, a manufacturer of factory-built housing, will use the facility for the production of park models, cabins and cottages, which are used as seasonal dwellings or for the outdoor hospitality industry.
“We are excited to announce the addition of this facility to our existing manufacturing footprint,” Bill Boor, president and CEO of Cavco said in a statement. “Not only will it allow us to better serve our park model customers with a dedicated facility, it will also create additional capacity for HUD code homes at our Goodyear factory to serve the Southwest region of the U.S.”
The building is part of a four-building, 365,000-square-foot business park called Park Aldea. The project was completed in September 2020 and has some space remaining, including a 76,000-square-foot building and two move-in ready spec suites.
Trammell Crow is planning to break ground on the second phase of the park, which is located near 83rd and Montebello avenues, later this year. The second phase will add 500,000 square feet of space and will be delivered in the first half of 2022.
Cooper Fratt, John Werstler, Tanner Ferrandi and Mitchell Stravitz with CBRE represented Trammell Crow in the sale, while Matt Frederick, Matt Hobaica and Kurt Saulnier of Lee and Associates represented the buyer.
“The Loop 101 corridor of the West Valley is clearly underserved with industrial product,” Fratt, said in a statement. “With the access the location provides to a large population base and a diverse labor pool, we expect to see continued demand for this product type throughout the area.”2020 was a record year for industrial real estate in the Valley. The Valley posted 13.9 million square feet of net absorption for the year and the market delivered the most inventory ever for a single year, adding 16.0 million square feet of industrial space, according to Colliers International research.