Corporate Park Phoenix, LLC is comprised of an eight (8) building, multi-tenant industrial and office project located in immediate proximity to the Sky Harbor International Airport in Phoenix, Arizona. Originally, we came to terms on the purchase when the project was approximately 34% vacant. During purchase contract negotiations and our contingency period, vacancy decreased to approximately 23% and our in-place yield improved by almost 100 basis points. In-place rents remain approximately 55% below market peak levels and the vacancy rate within the direct competitive set for similar size units is less than 10% in a supply constrained market.
Our purchase price is $7,525,000 or roughly $69 per square foot which is approximately 60% of replacement cost. Profit potential will be realized through minor capital improvements, which will include rebranding and enhancing the image of the park, demolishing excessive office space to cater to heated demand for low-finish industrial space, leasing up the vacant units and converting existing leases to market rents.
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If you have any questions or concerns regarding the offering, the property, or your investment commitment, please feel free to contact Dan Vittone or Andrea Powers at (949) 851-2020.