ViaWest Group to Build Trio of Industrial Buildings on 26 Acres in Booming Goodyear, Arizona

Article originally posted on CoStar on November 18, 2019

Construction at the new industrial park in Goodyear, Arizona, is scheduled to start in March next year.

Construction at the new industrial park in Goodyear, Arizona, is scheduled to start in March next year. (CoStar)

Real estate investor ViaWest Group bought a 25.9-acre parcel in Goodyear, Arizona, where it plans to add three buildings to the Phoenix suburb’s expanding industrial stock.

ViaWest, based in Phoenix, said it intends to begin construction at the southwest corner of Elwood Street and Sarival Avenue on one large and two smaller buildings totaling 410,000 square feet next March, with completion scheduled for early 2021. The plan includes construction of buildings sized at 284,290 square feet, 58,473 square feet and 67,476 square feet, all intended to be used by either single or multiple tenants.

Goodyear Mayor Georgia Lord called the project “further evidence of the confidence developers have in Goodyear, where tenants see a great place for business, quality of life, and expanded housing options for their employees.”

“The small- to mid-sized speculative buildings will provide quick-to-market solutions for a diversity of businesses,” Lord said in a statement.

The company said it paid $4.55 million for the industrial land sold by Santa Ana, California-based RADOS Properties-Arizona Land LLC in a joint venture with a Philadelphia-based investment company. The $175,675 an acre paid for the land is about 7% higher than the $163,880 average paid for industrial land in roughly 20 Goodyear deals over the past year, according to CoStar.

“The rapidly expanding Goodyear industrial market is a strategic location for a long-term investment,” added Gary Linhart, founding partner at ViaWest Group.

Industrial developers in Phoenix can’t build fast enough, especially in the region’s booming West Valley, even after new supply in the broader market reached a decade-high last year.

Developers have broken ground on at least 4.4 million square feet of industrial space since July, employment and population related demand tightening vacancies to under 7%, far below the market’s long-term average, CoStar Market Analyst Jessica Morin said.

Construction is concentrated in submarkets in the West Valley, including Glendale, Goodyear and Tolleson, where there is plenty of available and affordable land to build.

For the Record

Allen Lowe, principal at Lee & Associates, represented both the buyer and seller in the transaction.

 

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