Rectangle expands Phoenix footprint with small-bay industrial buy

Denver-based Rectangle Investment Management (“Rectangle”), the investment management affiliate of Comunale Properties (“Comunale”), has acquired the industrial building at 20 S. 69th Ave. in Phoenix. The property adds to the company’s existing metro Phoenix footprint, which was cemented last year with delivery of Comunale’s award-winning Chandler Connection Class A industrial project in Chandler, Arizona.

Its new Phoenix acquisition reflects Rectangle’s ongoing income and growth acquisition strategy (called Private Capital Core™), which targets high-quality infill, small- and shallow-bay, last mile industrial properties in markets with sustainable growth and tenant demand drivers.

“We are proud to bring our long-term, institutional-quality ownership and management skills to this new asset,” said John Comunale, President of Rectangle and Comunale. “This is great property and a welcome addition to our current Phoenix portfolio.”

Totaling 39,588 square feet, 20 S. 69th Ave. is fully leased to Action Gypsum Supply, a key regional supplier of building materials. Popular building amenities include a 28’ clear height, secure truck court, dock-high and drive-in loading doors, and 1.29/1,000 parking ratio.

“This clear height is a rarity for assets of this size, but what makes this property even more exciting is its location,” said Matt Dodge, Vice President of Investments for Rectangle and Comunale. “Tolleson is a true infill submarket with high tenant demand and very limited new supply or available land, a dynamic that can lead to outsized rent growth.”

The 20 S. 69th Ave. building sits one mile from the I-10 and Loop 202 and just 20 minutes from Sky Harbor International Airport, within a submarket experiencing historic industrial demand and leasing.

Phil Haenel, Foster Bundy and Katie Repine of Cushman & Wakefield represented the 20 S. 69th Ave. property seller.