ING Spending $43.5 Million for 669,387 Sq. Ft. of Industrial Space in West Phoenix

Business Real Estate Weekly & The P&Z Report
Jan 25, 2007

Phoenix – In a deal scheduled to close at press time, a company managed by ING Clarion Partners in New York City was expected to pay $43.51 million ($65 per foot) to purchase a 669,387-square-foot industrial project at the southeast corner of 75th Avenue and the Durango Street alignment in Phoenix. Panattoni Development Co. in Sacramento, Calif. (Carl Panattoni, principal) is the seller of the two-building complex. Bo Mills and Mark Detmer of Cushman & Wakefield of Arizona Inc. in Phoenix brokered the deal. The warehouse structures, without any tenants under contract, are 568,199 sq. ft. and 101,067 sq. ft. The larger building is at 2255 S. 75th Avenue and the smaller structure is at 2155 S. 75th Avenue. The project, called Durango Commerce Center, was just completed. The Cushman & Wakefield agents have the leasing assignment. ING Clarion is looking for tenants on the larger warehouse needing 80,000 sq. ft. and up. The rental rate is 38 cents per foot (triple net with a $4 per foot tenant improvement allowance). The smaller structure is divisible to 12,000 sq. ft. The rental rate for that building is 62 cents per foot (triple net with a $12 per foot tenant improvement allowance). ING Clarion Partners, a subsidiary of ING Group of the Netherlands, is a real estate investment advisory and management company with almost $50 billion in assets. Over the years, BREW has reported ING Clarion Partners buying and selling office, retail, industrial and apartment projects in the Valley. ING Clarion Partners is interested in additional investment opportunities in the Phoenix area. In July, BREW reported a company managed by ING Clarion Partners paying $40 million ($193.08 per foot) to buy a 207,160-square-foot office project at 6263 N. Scottsdale Road in Scottsdale. Panattoni has been an active developer (see related story P. 3). The contact at ING Clarion is Pete Stone . . . (206) 622-5000. Jason Quintel and Robert Long are contacts for Panattoni . . . (602) 840-0063. Call the Cushman & Wakefield agents at (602) 253-7900.