A Newport Beach, Calif.-based investment firm has entered Arizona with plans to build an industrial business park on 39 acres about 1 mile south of Chandler Fashion Center.
When completed, the park should include more than 500,000 square feet of office and industrial space, and house a work force of about 1,500 people.
The acreage, on the northeast corner of Loop 101 and Loop 202, has been purchased by Mark IV Capital. CB Richard Ellis represented the buyer in the $7 million deal, and the seller was Gateway Park LLC, a division of Phoenix-based El Dorado Holdings.
The land is zoned for industrial use.
"We have targeted the Chandler market certainly because of its growth and the dynamics that we look for in underwriting real estate," said Pat Jones, Mark IV’s vice president of real estate. "We like being on the confluence there of the 101 and the 202. We feel like it’s going to have some freeway exposure."
Mark IV plans to maintain ownership of the acreage and develop the business park for other tenants. It is now in the planning stages and construction should begin sometime next year, he said.
"There’s a pretty wideranging zone to it, catering to the straight industrial and to the flexible-type product with maybe more of an office component to it," Jones said. "There could be office, manufacturing and warehouse on the site."
Mark IV has projects in Orange County and Sacramento, Calif., and Las Vegas. Its portfolio includes conventional office buildings, industrial parks and medical office centers.
"The city of Chandler is planning for this to be a business park, and we’re right now considering a number of different development scenarios which could vary from potentially industrial uses to office uses," said Bob Crum, senior vice president of CB Richard Ellis. "Because it does have some freeway exposure, it is an exciting piece of property for users to consider."
The parcel is located in an area that is underserved from an office and industrial standpoint, he said.
"You have a lot of major users on the Price Road corridor south of the 202 down to Queen Creek, then down past Queen Creek is the two Intel plants," Crum said. "So what you have is a lot of employees who are traveling to that area, you have a lot of amenities because you have a regional mall and a number of power centers in that Chandler Boulevard-Loop 101 location. So it’s a good place for businesses to locate."
Mark VI is establishing a foothold in the Valley with this project and is now looking for other opportunities, Jones said.
"We like the Arizona market, the way it has grown up, and the big benefit is the transportation improvements that we’ve seen over the last 10 years," he said. "It’s a great town to get around in."