Boston, November 19, 2024 – CrossHarbor Capital Partners, a leading multi-strategy commercial real estate investor, and Creation, a Phoenix-based real estate development and alternative investment firm, announced today the close of a 15-acre acquisition in the sought-after industrial submarket of Tempe, Ariz. Terms of the deal were not disclosed.
The site, formerly an RV/boat storage and office complex, is to be redeveloped as Source Logistics Center, a 144,885-SF industrial facility located on the southeast corner of Warner Road and Hardy Drive. The project will feature 32-foot clear heights and six acres of contiguous yard space, offering flexible options for material storage, trailer parking, and/or box truck or van parking to support last-mile delivery needs. Additionally, the site boasts a prime location in close proximity to the I-10 and Loop 101 Freeways and prominent frontage on Warner Road. Source Logistics Center is rail spur capable given its adjacency to a Union Pacific rail line, presenting a rare opportunity for tenants requiring rail access.
“We are pleased to invest and collaborate again with Creation as they begin development of Source Logistics Center in this prime infill industrial hub,” said Ryan Westervelt, vice president at CrossHarbor Capital Partners. “We value their expertise in sourcing high-quality opportunities and in every facet of the development process, particularly in the Phoenix region.”
The project was permitted after approval by Tempe's Development Review Commission earlier this year and is scheduled to break ground early next year. LGE Design Build is the architect and general contractor. Cooper Fratt of CBRE will oversee the leasing and is currently fielding pre-lease inquiries.
“Tempe is a land-constrained industrial submarket with a high barrier to entry,” said Grant Kingdon, principal of Mountain West Region at Creation. “We are excited to further our partnership with CrossHarbor on this exciting infill development that will elevate Tempe’s logistics landscape.”
The property benefits from access to multiple full-diamond interchanges, providing tenants with access to serve the rapidly growing Phoenix population. The attractiveness of the location due to its accessibility to nearly the entire Phoenix Metro within 40 minutes is amplified by the strong economic environment and demographics in Tempe, which are highlighted by the presence of major research hubs, technology companies, and advanced manufacturing employers. Tempe is located at the epicenter of one of the highest-density hubs for semiconductor manufacturing, materials, and equipment development in the U.S.
Creation and CrossHarbor garnered widespread attention in the news last year when they struck a deal with Prologis, Inc., a global leader in logistics real estate, for the $184 million sale of Airpark Logistics Center in Goodyear, marking the largest multi-building industrial business park acquisition in Arizona history.
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