LOS ANGELES – October 30, 2017 – CBRE Global Investors has acquired Tempe Logistics Center, a 175,314-square foot industrial building located in the Southeast Valley submarket of Phoenix, Arizona, on behalf of Allstate as part of its investment portfolio. The asset is fully leased to high-quality, investment-grade tenants.
Tempe Logistics Center is centrally located with access to major arteries allowing quick distribution throughout the Phoenix metro area. It also offers easy access to Phoenix Sky Harbor International Airport and is proximate to Arizona State University and the associated amenity base, which helps tenants attract and retain employees.
“The Phoenix industrial market is home to a diverse array of tenants across major sectors including technology, manufacturing, distribution, and research and development,” said Mike Everly, Portfolio Manager, CBRE Global Investors. “Its high standard of living and favorable business climate have always been strong demand drivers, and the Southeast Valley submarket is considered a key in-fill market within the metro area.”
“We’re thrilled to be working with CBRE Global Investors on such a successful project,” said Mike Moran, Managing Director of Real Estate Equity at Allstate. “The strategic location, quality of the asset and its tenants, and the heightened demand for industrial assets all make Tempe Logistics Center a good fit for our investment portfolio.”
Located at 1524 W. 14th Street in Tempe, the property is a “last-mile” warehouse with 18- to 24-foot clear heights, automatic fire suppression, 23 dock loading doors, six grade-level doors, an over-standard parking ratio, and 130-foot truck courts, which allow for greater maneuverability and better accommodation of multiple trucks. Recent tenant improvements include the installation of full air conditioning in the office and warehouse space, a new office and kitchen buildout, and an upgraded power supply.
Cushman & Wakefield’s Phoenix industrial team of Will Strong; Mike Haenel; Andy Markham, SIOR; and Phil Haenel negotiated the transaction on behalf of the seller, LBA Realty.
“This investment opportunity offered both stable cash flow in its long-term leases and value-add upside potential with a below-market rate,” said Will Strong, Capital Markets, Cushman & Wakefield. “With healthy recent absorption levels, rental rates in the Tempe submarket are expected to increase significantly as the overall market continues to grow and fundamentals continue to improve.”
About CBRE Global Investors
CBRE Global Investors is a global real asset investment management firm with $98.9 billion in assets under management* on a combined pro forma basis, as of June 30, 2017, to reflect the completion of the acquisition of a majority stake in Caledon Capital Management Inc.
CBRE Global Investors is an independently operated affiliate of CBRE Group, Inc. (NYSE: CBG). It harnesses the research, investment sourcing and other resources of the world’s premier, full-service commercial real estate services and investment company for the benefit of its investors. CBRE Group, Inc. has more than 75,000 employees in approximately 450 offices (excluding affiliates) worldwide. For more information about CBRE Global Investors, please visit www.cbreglobalinvestors.com.
*Assets under management (AUM) refers to the fair market value of real asset-related investments with respect to which CBRE Global Investors provides, on a global basis, oversight, investment management services and other advice and which generally consist of investments in real assets; equity in funds and joint ventures; securities portfolios; operating companies and real asset-related loans. This AUM is intended principally to reflect the extent of CBRE Global Investors’ presence in the global real asset market, and its calculation of AUM may differ from the calculations of other asset managers.
The Allstate Corporation (NYSE: ALL) is the nation’s largest publicly held personal lines insurer, protecting approximately 16 million households from life’s uncertainties. Allstate’s real estate investments group has decades of experience and looks for core and value-add opportunities across geographies in the United States and internationally, and in a range of investment vehicles, such as funds, co-investments and joint ventures. Allstate’s real estate investments include retail, multi-family, office and industrial properties. For more information on the company’s investments focus, visit www.allstateinvestments.com.
About Cushman & Wakefield
Cushman & Wakefield is a leading global real estate services firm that helps clients transform the way people work, shop, and live. Our 45,000 employees in more than 70 countries help occupiers and investors optimize the value of their real estate by combining our global perspective and deep local knowledge with an impressive platform of real estate solutions. Cushman & Wakefield is among the largest commercial real estate services firms with revenue of
$6 billion across core services of agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset management (DTZ Investors), project & development services, tenant representation, and valuation & advisory. 2017 marks the 100-year anniversary of the Cushman & Wakefield brand. 100 years of taking our clients’ ideas and putting them into action. To learn more, visit www.cushwakecentennial.com, www.cushmanwakefield.com or follow @CushWake on Twitter.
About LBA Realty
LBA Realty is a full-service real estate investment and management company with a diverse portfolio of office and industrial properties in major markets throughout the western United States including California, Colorado, Washington, Oregon, Arizona, Nevada, Texas and Utah. The foundation of the company is to create and execute customized value creation programs for individual properties and to develop strong customer relationships.