Article Originally Posted By PhoenixBusinessJournal On December 21, 2021
Dermody Properties, a Nevada real estate investor and developer focused on the industrial-logistics sector, has acquired 961 acres in El Mirage on which the company plans to develop what's being dubbed as one of the "largest industrial parks in Arizona’s history."
The project makes up the bulk of the Copperwing Logistics Center industrial park, a 1,000-acre chunk of land already earmarked for industrial use that was approved in 2020. The industrial park is located at the southwest corner of El Mirage Road and Peoria Avenue.
In total, Dermody Properties purchased five parcels of land for more than $52 million in cash on Dec. 17, according to county records.
Dermody Properties will develop approximately 10 million square feet of speculative space over the next 10 years and will develop approximately 300 acres for other third-party owner/users and build-to-suit customers. Work on the project is expected to get underway in 2022.
“The Phoenix metropolitan area is one of the fastest-growing regions in the country and is experiencing unprecedented industrial growth with more than 20 million square feet of development per year, falling in line with parts of the Inland Empire in Southern California,” said Pat Gallagher, Southwest Region partner at Dermody Properties, in a statement. “With the acquisition of land at this scale, Dermody Properties intends to create a best-in-class industrial park that is unlike any other similar development in Arizona. We appreciate Novo Development bringing us this unique opportunity.”
Novo Development, which has been involved with the project since its inception, will continue to assist with this new venture.
Looking to attract data, distribution centers
The land is being purchased from the John F. Long Family Trust, known for developing more than 30,000 homes over four decades, including Arizona’s first master-planned community, before focusing efforts on retail and commercial projects in the West Valley.
“Our family has owned this property for a number of years,” said trust representative Jacob Long, in a statement. “Our goal was always to create a world-class employment & industrial complex, while providing land use support to protect the operation of Luke Air Force Base. This is a goal we have shared with the City of El Mirage for many years. We believe strongly that Dermody Properties shares this vision and will carry it forward.”Located near the Northern Parkway Expressway, the park is 3.5 miles from the Loop 101 and Loop 303 freeways. The industrial park is expected to attract large distribution users, data centers and companies with manufacturing operations because of the area’s strong labor base and easy access to Phoenix and most western markets, the developer said.
The property is located within an approved Foreign Trade Zone (FTZ), meaning companies within the park that are active users of FTZ can receive up to a 75% reduction in real estate and personal property taxes. Dermody Properties also intends to bring new water and sewer sources to the site along with new roads and park amenities.