Gilbert warehouse complex sells for $99.6M

Article originally posted on HERE on January 17, 2025

One of the biggest real estate transactions of the year in Gilbert occurred just before Christmas when a Canadian land trust sold a complex of three industrial buildings for just under $100 million.

Artis Real Estate Investment Trust sold Park Lucero East at 410-450 Germann Road, near Gilbert Road, Dec. 23 to Pennsylvania-based EQT Exeter Property Group for $99.6 million, commercial real estate tracker vizzda.com reported.

Built in 2021 on 36.7 acres, the complex totals 562,920 square feet spread across three buildings that individually range in size between 102,325 and 317,058 square feet. The total square footage mean that the sale broke down to a per-square-foot price of $176.93, vizzda said.

With offices on nearly every continent, Exeter Property Group was founded in 2006. In 2021, Exeter combined with EQT to create EQT Exeter.

One of the largest real estate investment managers in the world, EQT Exeter said it seeks “superior returns by selecting or building properties that meet tenants’ needs for value proposition and functionality, and consequently provide investors with a high level of cash flow and capital appreciation potential.”

It boasts a broad portfolio comprising “state-of-the-art distribution centers, to high-image corporate, lab and research facilities, to urban residential towers.”

Artis is one of the largest diversified commercial real estate investment trusts in Canada, and is an unincorporated closed-end real estate investment trust created under, and governed by, the Province of Manitoba.

Its portfolio of industrial, office and retail properties extends across Canada and the United States. As of September, that portfolio comprised 89 commercial properties totaling approximately 10.1 million square feet of gross leasable space.

Meanwhile, CenterSquare Investment Management Co. last month acquired the Key West Business Park in Gilbert for $19.05 million, according to vizzda.

In a release, CenterSquare said the 96,400-square-foot, four-building complex is fully leased by 19 tenants.

“This was an off-market opportunity, sourced through CenterSquare’s established network of relationships,” the buyer said in a release.

“The business plan consists of marking rents to market and making various capital improvements to the property including repainting, concrete repairs, and increasing cooling capacity in the warehouses by adding more air conditioning units. These improvements, combined with the institutional management of the property, will allow CenterSquare to successfully execute its value-add strategy and drive meaningful growth in net operating income.”

Founded in 1987, Philadelphia-headquartered CenterSquare Investment Management is an independent, employee-owned real asset manager “focused on listed real estate, private equity real estate and private real estate debt.”

With $14 billion in assets under management, it said it will be continuing to make new investments in the Valley.