ViaWest Group To Build Logistics Center in Phoenix’s Chandler Suburb

Article originally posted on CoStar on April 4, 2021

The Converge Logistics Center is expected to open by mid-2022. (CoStar)

Developer ViaWest Group plans to break ground this year on three logistics buildings in Chandler, Arizona, an active market for logistics, shipping and manufacturing, under a 77-year ground lease signed with an elementary school district that serves the area.

ViaWest, based in Phoenix, is looking to build the Converge Logistics Center that includes three multitenant industrial buildings totaling about 512,710 square feet. The developer said it expects to start the project, which would be built without a signed tenant, during the third quarter and to have the buildings ready for occupancy by mid-2022.

The 28.6-acre property borders Interstate 10 and is less than a mile from freeway interchanges on Chandler and Ray roads, allowing for easy distribution to all areas of the valley, the company said. The three buildings sized at between 141,000 and 210,670 square feet can be divided for multiple tenants.

“Infill development sites are quite scarce in Phoenix, and bringing distribution and logistics to a highly desirable location will benefit the surrounding community,” ViaWest Founding Partner Steven Schwarz said.

Under Arizona law, school district officials may sell or lease property with the approval of their district’s governing board. The Kyrene district’s board approved the ground lease last December, according to district documents.

Advanced manufacturers that have a large footprint in the Chandler industrial market have been under strain over the past year as a result of the economic effects of the pandemic. However, local logistics property has held up well, buoyed by the increased dependence on online shopping and home deliveries because of stay-at-home orders, according to CoStar Market Analytics.

For the Record

Mike Haenel, Andy Markham and Phil Haenel with Cushman & Wakefield will be handling the marketing and leasing of the project. The development team includes Butler Design Group, Willmeng Construction and Kimley-Horn.