Fundrise purchased The Cubes at Glendale – Building E from Clayco this year. Image courtesy of CRG
Fundrise has signed Saddle Creek Logistics Services as a tenant at The Cubes at Glendale – Building E, a 570,080-square-foot industrial building in Glendale, Ariz. The logistics company, specialized in designing and delivering omnichannel logistics solutions for manufacturers, retailers and ecommerce companies, will occupy the entire facility.
The lease marks Saddle Creek’s entrance into the Arizona market. Newmark Senior Vice President Ladson Montgomery, Managing Director Rob Stephens and Associate Chase Gabriel brokered the transaction on behalf of the tenant.
Part of a massive industrial campus
Building E is one of the warehouses at The Cubes at Glendale, a 5.5 million-square-foot, 355-acre industrial project. Fundrise purchased the property this year from Clayco for $82.6 million, financing its acquisition with a $58 million loan from Allianz, according to CommercialEdge data.
Completed in 2022, the 620-foot-deep building features 40-foot clear height, 87 dock-high doors, four large grade level doors, 190-foot concrete truck courts, 132 trailer parking stalls and 356 auto parking stalls. The Class A property has energy-efficient LED lighting, insulated ceilings and an ESFR fire sprinkler system.
Located at 7421 N. Reems Road in the West Valley submarket, the warehouse is roughly 30 miles from downtown Phoenix. The 36.8-acre site is within the Loop 303 Corridor and near the newly constructed Northern Parkway.
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Clayco’s CRG partnered with Phoenix-based Bird Dog Industrial for the development of The Cubes and broke ground on the project in 2021. The master-planned industrial park is currently under construction and will be developed in phases over a five-year period. Clayco serves as general contractor and Lamar Johnson Collaborative provided architecture services.
Some of the park’s completed warehouses have already found different owners. LaSalle Investment Management purchased the 1.2 million-square-foot Building A for $135 million, while US Merchants paid $62 million for the 637,040-square-foot Building D.
Phoenix, still a hotspot for industrial activity
Phoenix continues to attract numerous companies operating in the manufacturing, warehousing and logistics sectors. The metro’s vacancy rate clocked in at 3.2 percent in August, second after the Central Valley among the western markets and 120 basis points lower than the national 4.4 percent, a recent CommercialEdge report shows.
As for industrial development, The Valley had 51.3 million square feet in the pipeline as of August, representing 14.1 percent of stock, the highest percentage in the U.S.
Many of the metro’s new developments are underway in the West Valley submarket, having Glendale as focal point. Just a couple of days ago, LPC Desert West broke ground on a $515 million industrial project totaling 2.4 million square feet. Completion is expected in the fourth quarter of 2024.
And, earlier this month, ViaWest Group commenced construction on a 144-acre industrial development also in Glendale. The project’s Phase 1 will consist of seven buildings totaling 1.2 million square feet, scheduled for delivery in the fourth quarter of 2024.
