Cushman & Wakefield advises sale of a 400,000 SF single-tenant industrial building in Phoenix for $69.55 million

Cushman & Wakefield has advised Cohen Asset Management in the sale of a freestanding 400,000-square-foot Class A cross-dock industrial building in Phoenix, Arizona. The single-tenant property is 100% leased to The Home Depot, representing one of the very few return centers the company operates nationwide. The buyer was Santa Monica, CA based Karney Properties, a family-owned, institutionally operated enterprise, which acquired the asset for approximately $69.55 million.

Cushman & Wakefield’s Will Strong, Michael Matchett and Molly Hunt of the firm’s National Industrial Advisory Group – Mountain West represented the seller in the transaction.

"With its Class-A infrastructure and blue-chip tenancy, Home Depot Returns Center exemplifies stability and growth potential,” said Molly Hunt. “This facility’s mission-critical role within Home Depot’s national network ensures its long-term value, making it an attractive investment for Karney Properties."

Located at 7200 West Buckeye Road, the building features top tier improvements including a fully air conditioned warehouse, high speed fans, equipment on every door, a gated and security station-controlled yard area, approximately 4.5% of recently refreshed office space, and ±4 acres of excess trailer parking that was customized by and for the tenant. Furthermore, the property’s strategic cross-dock design enhances its appeal by optimizing operational efficiency and streamlining the flow of goods. It is also situated at the strategic junction of I-10 and Loop 202.

“Poised for future success, the property’s ideal location serving the entire Western U.S enhances the building’s investment profile and its potential to achieve mark-to-market rental rates ahead and increase NOI,” added Will Strong.

According to Cushman & Wakefield’s latest midyear Q2 2024 report, the Phoenix Southwest Valley industrial submarket recorded over 6.7 million square feet of occupancy growth in the first half of 2024. This impressive figure accounted for roughly 80% of the total net industrial growth in the Phoenix Metro industrial market.