- 2688 East Rose Garden Lane, Phoenix, AZ 85050
- Property Type:
- Single Tenant
- Cap Rate:
- 5.74% cap
- Square Feet:
- 55,312 sqft
- Lot Size:
- 3.52 acres
- Price Per Square Foot:
- Year Built:
- Fully Air-Conditioned Tilt-Up Construction Featuring 80 Parking Spaces, and A Fully Secured Truck Court
- 100% Occupied With 1.5 Years Remaining on the Lease and Two 5-Year Renewal Options at Fair Market Rent
- Absolute Triple-Net Lease, Minimizing Landlord Responsibility, and Expenses
- Significant Upgrades and High-End Manufacturing Equipment Recently Installed
- Located in North Phoenix, With Immediate Access to Loop 101, State Route 51, and Interstate 17
- Freestanding 55,312 Square-Foot Industrial Warehouse Situated on 3.52 Acres in Deer Valley
- Low Submarket Vacancy Rate of 3.9%, and Annual Rent Growth of 7.9% (Costar)
- Heavy Power With 4,000 Amps
Marcus & Millichap is pleased to present the opportunity to acquire a short-term leased, single tenant industrial property located in the Deer Valley submarket in Phoenix, Arizona. The asset is located at 2688 East Rose Garden Lane in Phoenix and is fully leased to Cassavant Machining, Inc. The subject property consists of approximately 55,312 square feet and is situated on 3.52 acres of land. This Class A, freestanding industrial asset features tilt-up construction, a fully air-conditioned warehouse, heavily upgraded power (4,000 amps), a combination of dock and grade-level overhead doors, providing fully secured and gated access to the truck well with outside storage, 19 percent office space, and 80 parking spaces. The building was also designed to add additional warehouse space and overhead doors providing the flexibility for this building to support manufacturing or distribution functionality.
The tenant has just 1.5 years remaining on a triple-net lease with two five-year renewal options at fair market rent. The tenant has made significant upgrades to the building in the past five years, including upgrading power and installing state-of-the-art manufacturing equipment. Despite the pandemic, the tenant has remained fully operational at the subject property while making investments in new plant equipment and machinery.
Since 1972, Cassavant Machining, Inc., also known as CassMac, has manufactured machined component parts for the aerospace and commercial industries. CMI’s customers include some of the world’s largest aerospace and defense companies in the world including Raytheon Technologies, Honeywell International, Lockheed Martin Corporation, and Northrop Grumman.
Located in North Phoenix, the property has easy access to major highways, including Loop 101, State Route 51, and Interstate 17, providing easy access throughout the metropolitan Phoenix market. The property is situated within Central Phoenix (an area referred to as Deer Valley), a submarket with strong fundamentals and growing tenant interest. At 3.9 percent, the vacancy rate is at the lowest level in 20 years. The low vacancy rate has helped power industrial rent growth to 7.9 percent, the highest level on record in North Phoenix (CoStar). Taiwan Semiconductor Manufacturing Co (TSMC) has broken ground on their $12 billion manufacturing plant nearby, which will provide even greater industrial demand for suppliers and related companies to be located near TSMC’s plant, in addition to organic market growth. With no nearby properties ready to deliver in the immediate future, there are no supply pressures on vacancy and rent growth. Simply put, Central Phoenix, and specifically this Deer Valley cluster, offers industrial investors a prime opportunity in today’s economic environment.