Logistics Property Company has locked in a $68.3 million senior loan to refinance Palm Gateway Logistics Center, a newly developed industrial project in Mesa, Arizona. The financing was provided by PCCP and is secured by a four-building, Class A industrial park totaling 614,800 square feet at the northeast corner of Sossaman and Pecos Road.
Palm Gateway Logistics Center is currently 61% leased, with remaining vacancies positioned to accommodate a broad spectrum of industrial tenants. Available configurations are described as flexible enough to serve advanced manufacturing, logistics, and distribution users, reflecting ongoing demand for modern industrial space in the area.
The property sits in Phoenix’s Southeast Valley, less than two miles from Phoenix-Mesa Gateway Airport and within three miles of Loop 202. This location offers efficient access for regional distribution throughout the greater Phoenix metropolitan area, as well as connectivity to major markets across the broader Southwest U.S. The surrounding Southeast Valley corridor has become a hub for large-scale corporate investment, attracting multibillion-dollar commitments from Apple, Meta, Google, and LG Energy Solution.
Industrial fundamentals in the Southeast Valley continue to trend positively following a wave of recent construction. The submarket totals 106 million square feet of industrial inventory and has recorded 2.0 million square feet of year-to-date net absorption. According to the figures cited, net absorption has outpaced year-to-date deliveries by a factor of 8.2, underscoring the depth of tenant demand relative to new supply.
The refinancing of Palm Gateway Logistics Center aligns with this backdrop of strengthening industrial performance. By securing senior debt on a Class A, partially leased asset in a growth corridor with significant corporate investment, the transaction illustrates how lenders are underwriting to both current occupancy and submarket demand metrics. The interplay of rising absorption, limited effective new supply, and sustained occupier interest continues to support capital flows into industrial product in Phoenix’s Southeast Valley.
