Colony Northstar Ramping Up In Valley… Adds 804,300SF For $57.92M

PHX-logistics-Center-420-S-53rd-Ave-JLL
Article originally posted on Business Real Estate Weekly on June 29, 2017

Tolleson/Phoenix – In acquisitions that show a steady pattern of growth for the company in the Valley, Colony NorthStar Inc. in Los Angeles, Calif. (NYSE:CLNS) has added another 804,300 sq. ft. of industrial space in two buildings located in Tolleson and two structures located in Phoenix. With the combined $57.4 million ($71.37 per foot blended average) spent on those acquisitions and two deals completed earlier this year, so far in 2017, Colony NorthStar has invested $92.2 + million ($76.10 per foot blended average) to buy 1.307 + million sq. ft. of industrial space in the Valley. Colony NorthStar, with offices in Los Angeles and New York City, N.Y., is a global real estate and investment firm with $56 + billion in assets. In the most recent deal, Colony NorthStar paid $39 + million ($69.84 per foot) to purchase 558,410 sq. ft. in two warehouse-distribution buildings located south of Van Buren Street and east of 104th Avenue in Tolleson. The buyer in two transactions was ColFin 2017-7 Industrial Owner LLC (Colony NorthStar company). The sellers were DCT-AZ 2004 RN Portfolio D LLC and DCT-AZ 2004 RN Portfolio U LLC, which are both companies formed by DCT Industrial Trust Inc. in Denver, Co. (NYSE:DCT, Philip Hawkins, pres.). The cash sales were brokered by Bo Mills and Mark Detmer of JLL in Phoenix, along with JLL agents Tony LydonMarc Hertzberg and Riley Gilbert, who have the leasing assignment on the fully occupied project. The acquisition included a 279,279-square-foot distribution facility at 101 N. 104th Avenue and a 279,131-square-foot warehouse immediately to the east at 101 N. 103rd Avenue. In October 2004, BREWreported DCT paying a combined $20.171 + million ($36.12 per foot blended average) to acquire the projects as part of a $67.687 million portfolio deal that included 1.33 million sq. ft. of industrial space in 12 Valley buildings. The 104th Avenue facility, which sits on 11.1 acres, was developed in 1995 and the 103rd Avenue structure, taking 15.2 acres, was developed in 1995. In the other deal, a Colony NorthStar entity paid a combined $18.4 million ($74.83 per foot blended average) to buy 245,890 sq. ft. of distribution and warehouse space in two buildings within the 680-acre Freeport Center industrial park located north of Buckeye Road and west of 51st Avenue in Phoenix. The dock-high structures were sold in two cash transactions by entities formed by partners Overton Moore Properties in Gardena, Calif. (Stanley Moore, chairman) and PCCP LLC in Los Angeles (William Lindsay, managing partner). In one of the sales, ColFin 2017-6 Industrial Owner LLC (Colony NorthStar entity) paid $10.3 million ($80.67 per foot) to purchase a 127,680-square-foot warehouse located at 420 S. 53rd Avenue. The seller was OMP PCCP 53 Avenue LLC (Overton Moore/PCCP company). The deal was brokered by Mills, Detmer and Ryan Sitov of JLL, along with Phoenix-based Lee & Associates Inc. agents Stein Kossand Tom Louer, who also have the leasing assignment on the fully occupied building. The 6.23-acre property was developed in 1987. The acquisition included a 2.09-acre parcel of excess land suitable for another 40,000 sq. ft. of space. In February 2014, BREW reported the seller paying $6.95 million ($54.43 per foot) to acquire the existing building and adjoining land. Also within the roughly 7 million-square-foot Freeport Center, ColFin 2017-6 Industrial Owner LLC paid $8.1 million ($68.52 per foot) to buy a 118,210-square-foot warehouse facility at 1002 S. 56th Avenue. The seller was OMP PCI 56 Avenue LLC (Overton Moore/PCCP entity). Mills and Detmer also negotiated that sale, along with Phoenix Cushman & Wakefield agents Gary AndersonAndy Cloud and Mike Gilbert, who have the leasing assignment on that space. The multi-tenant structure is 80 percent occupied, with 21,383 sq. ft. available for lease. That 5.5-acre property was developed in 1985. In June 2015, Overton Moore/PCCP paid $5.275 million ($44.62 per foot) to purchase the building. In two deals completed in April and May, Colony NorthStar invested $34.8 million ($69.16 per foot blended average) to buy 503,194 sq. ft. of industrial projects in Phoenix. Those sales included the $18.7 million ($58.46 per foot) acquisition of 325,424 sq. ft. of industrial space in two buildings in the Reywest Commerce Center at 3602 W. Washington Street and 3555 W. Washington Street and $16.1 million ($90.57 per foot) to acquire the 177,770-square-foot Parc 17 industrial park at the northwest corner of 7thAvenue and Interstate 17. Colony NorthStar was formed through the merger of Colony Capital Inc.NorthStar Realty Finance Corp. and NorthStar Asset Management Group Inc. Until January 2015 when the company acquired $1.6 billion of industrial projects from Cobalt Capital Partners in Irving, Tex., Colony Capital was known as Colony Financial Inc. (COLFIN). That portfolio was comprised of 30 + million sq. ft. of industrial space in 16 U.S. markets, including 721,149 sq. ft. in 10 buildings located in Phoenix, Tempe and Tucson that were purchased for $34.906 + million. John Hopkins of Colony NorthStar is at (214) 995-3950. Mark Bowen of DCT is at (303) 597-2400. Jason Hines of Overton Moore is at (310) 323-9100. Reach the JLL agents at (602) 282-6300. Contact the C&W agents at (602) 954-9000. Call the Koss-Louer team at (602) 956-7777.

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