Article Originally Posted By Phoenix Business Journal On July 30, 2021
A joint venture between Confluent Development and DPC Cos. has sold the Hub 317, a class A distribution center in the Sky Harbor Airport submarket for $33 million, according to Maricopa County records.
The buyer of the 225,000-square-foot project was RREEF Property Trust. The redevelopment, which was formerly a Sam's Club store, was Confluent Development’s first ground-up building in the Valley.
“Hub 317 signifies the strength of not only the industrial class and the Phoenix market, but also the partnership we developed with DPC to get this project done,” Marshall Burton, president and CEO of Confluent Development, said in a statement. “While other asset classes remained dormant throughout the past year, industrial showed no signs of slowing down. This deal signifies the start of new era of heightened confidence and interest in industrial development, and we are well-positioned to capture this demand.”
The project, located at 317 S. 48th Street, was completed in summer of 2018. Cushman & Wakefield served as the leasing agent and broker for the sale. Ware Malcomb was the architect on the project.
The industrial market is booming in the Valley, so it makes sense that investors will be looking to pick up properties.
The Phoenix metro has seen a record-breaking amount of industrial construction get underway in the first half of 2021, according to CoStar Group Inc. research. At the end of the second quarter, 25 million square feet of industrial space was under construction across the Valley.
CoStar data also shows the amount of industrial space under construction right now will add 6.7% to the existing inventory. This places Phoenix second in the nation for industrial space under construction as a percentage of inventory.