Lower Buckeye – Phoenix, Arizona

BlackRidge Real Estate Group had successfully used its deal-tested, development approach on many industrial properties in Phoenix prior to commencing work on the Lower Buckeye development.  Utilizing our market knowledge, when we sensed that the Phoenix metro residential fundamentals had begun to change, BlackRidge proactively shifted focus and identified prospective residential sites ideally suited for distribution development.  Due to our solid brokerage connections and a concentrated effort, we were able secure a purchase and sale agreement on an infill 80-acre residential site in southwest Phoenix.  Our development strategy was immediately implemented to handle the unusually short PSA timeframes and challenges: 

• 23 day due diligence period
• 7 day closing period
• Entitlement Risk (Residential zoning)
• Purchase price exceeding $10,000,000
• Escalating construction costs

As a result of BlackRidge’s strong consultant relationships, all parties agreed to fast track the ALTA/Topographical survey, geotechnical analysis and Phase I environmental analysis.  In addition, we identified the top local land planning attorney and began scheduling meetings with neighborhood groups, planning dept. staff and various council members.  Due to the size of this development, we identified our prospective institutional partners and quickly put forth a negotiated agreement based on an appropriate development structure.  Upon securing ProLogis as our development partner, we continued our due diligence efforts  to uncover any unknown risks in addition to fully understanding all the entitlement challenges that lay ahead for rezoning and preliminary site plan approval.

Upon closing, we commenced on an accelerated entitlement schedule, which culminated in obtaining the industrial zoning together with preliminary site plan approval within several months following closing. Due to our successful efforts on the initial 80-acre site, we were able to subsequently acquire and rezone the adjacent 80-acre residential parcel allowing for over 2.5 million square feet of bulk distribution space on this 160-acre infill site.

BlackRidge underwrites each project in a conservative manner and does not make a habit out of acquiring land that is not entitled; however, when the right opportunity presents itself, we have a deal tested approach for achieving successful results, while carefully analyzing risk for our partners and ourselves.

A summary of this development:

Riverside Distribution Center - Phoenix, Arizona

Location:  Phoenix, Arizona - Lower Buckeye west of 51st Avenue
Acreage:  160 Acres
Buildable Square Feet:  2,520,000 estimated, upon Full Build Out
Product Type:  Industrial - Warehouse/Distribution/Manufacturing/LightAssembly
Number of Buildings:  Six
Ranging in size from:  150,000 to 1,000,000 square feet

Overview:
Riverside Distribution Center is a joint development with ProLogis, the world’s largest and preeminent industrial REIT and BlackRidge Real Estate Group.  This project, located approximately two miles south of I-10 and within a half mile of the future 202 beltway interchange at Lower Buckeye Road, will feature multiple high image class A industrial facilities ranging in size from 150,000 to over 1,000,000 square feet.  The project will include both cross-dock and front park/rear load buildings with minimum 32’ceiling clearance, abundant trailer parking and ESFR fire sprinkler systems.  This development is one of the most significant infill industrial opportunities in the greater Phoenix market, and will provide future expansion for prospective tenants within the Southwestern Phoenix Industrial Market.  Build-to-suit opportunities and inventory buildings are available.