Initial Development has recently acquired the Executive Center at Southbank and is currently promoting the Phoenix business park, which boasts over 141,000 square feet of existing space, to potential industrial tenants. The property was purchased for a sum of $14 million from LBA Realty and is currently occupied by notable companies such as FedEx Logistics and OmniEngine. The deal was facilitated by Newmark Group Inc.’s Tom Adelson and Erin McClure representing Initial Development while JLL Capital Market’s Will Mast represented the seller.
The expansive 15-acre site will soon undergo a repositioning in order to accommodate more industrial users. According to reports from the Phoenix Business Journal, this site was originally built in the early 1990s as home to Arizona Design Center before it relocated to Scottsdale.
CBRE Group Inc.’s research reveals that Metro Phoenix has seen an increase in projects converting office spaces into other uses with a total of 23 completed or planned conversions equating up to approximately 3.5 million square feet of office space being transformed into various developments including multifamily units or mixed-use properties.
This article first appeared on Connect CRE.
