CBRE Negotiates $27 Million Sale of Manufacturing Facility in Phoenix

CBRE National Partners’ Rusty Kennedy, Joe Cesta, Rebecca Perlmutter, along with Evan Koplan, Geoff Turbow and Anthony DeLorenzo, represented Bailard in the $27 million sale of a 188,140-sq.-ft.-manufacturing and distribution building in Phoenix, Ariz., to i3 Interests.

“i3 recognized the significant value in this asset given the extremely low vacancy in the submarket, exceptional tenant profile, and ability to meet the growing demand for manufacturing space in the Phoenix MSA,” said Kennedy.

Bailard purchased the building in September 2017 and sold it after successfully executing its business plan for the property.

The state-of-the-art facility located at 7822 South 46th Street is fully leased to BAE Systems, a U.S. Military helicopter and aircraft seat provider. The property features heavy power, dock high loading, 100% HVAC and 450 auto parking spaces. The building sits on 8.49 acres, with an additional 2.8 acres for future development.

The property has easy access to I-10 via the full diamond interchange at Baseline Road and is ideally located just south of Phoenix Sky Harbor International Airport.

According to CBRE research, the airport area remains one of the tightest submarkets in the Valley, with a low 3.9% vacancy rate. Phoenix continues to rank among the nation's top projected rent growth markets and is No. 1 in the nation for manufacturing growth. At the time of sale, no existing lease opportunities existed in the 125,000 – 300,000 sq. ft. range in the Sky Harbor Airport submarket.