Tolleson Industrial Park – Tolleson, Arizona

The Tolleson Industrial Park development opportunity had many inherent challenges that forced two previous developers to abandon their ambition to develop the site including:

• Irregular shaped parcel
• Existing development agreement requiring significant participation in constructing road and utility infrastructure with limited benefit to the site
• Fee simple, government owned Salt River Project (SRP) irrigation ditch bisecting the property
• Challenging municipal entitlement
• Various easements affecting the property
• Rising land costs due to a competitive market

BlackRidge cautiously analyzed the initial development risks to determine if it was worth the time and investment in due diligence.  As we came to understand the concerns, we determined that with the proper deal-tested approach and enough time, these challenges could be overcome.

After considerable master planning review, we conveyed our proven approach to the landowner resulting in a collaborative effort to accomplish the required tasks.  In addition to allowing BlackRidge to drop the irregular shaped portion of the site, the landowner helped advocate our position to the City because of his belief in our process. 

BlackRidge worked closely with the City and was successful in modifying the General Development Plan to negate the need for the future planned roadway, which provided little benefit to the site and would have precluded our ability to control the ingress and egress of truck traffic to our site.  In addition, we convinced the adjacent landowner of the need to terminate the existing development agreement.  We built relationships with the local utility providers, City planning staff and City civil consultants that translated to a common sense, cost effective approach, resulting in our mutual agreement to leave the existing SRP ditch and various easements in place.

By quickly analyzing our due diligence exposure and advocating a shared approach, we were ultimately successful in fully entitling this site for over 535,000SF of future industrial development at a below market land basis. 

Where others see insurmountable challenges, BlackRidge sees unexploited opportunities.  This is where we apply our experience to provide a process to make each project uniquely successful for our investors and ourselves.  In this case, a portion of the Tolleson site was sold to a long-standing investment partner and we have since formed a partnership to develop the entire project. 

A summary of development:

Venture Partners – Tolleson Industrial Park – Tolleson, Arizona

Location:  Tolleson, Arizona - 87th Avenue & Washington Street / (Southwest Phoenix Metro Area)
Acreage: 9.56 Acres (Phase I only)
Buildable Square Feet:  165,000 (estimate)
Product Type:  Industrial - Warehouse/Distribution/Manufacturing/Light Assembly
Number of Buildings:  Two (in Phase I)
Ranging in size from:  73,000 to 92,000 square feet

Overview:
The Tolleson Industrial Park development is a joint venture structure between private investors and BlackRidge Real Estate Group.  BlackRidge’s role in this project is to manage the development, construction and leasing.  This two building project is located in southwest Phoenix, the largest distribution submarket, and is within two miles of I-10 just off 83rd Avenue.  These buildings are perfectly suited for tenants or buyers looking for a class A stand-alone distribution facility; providing front park/front load design, high bay ceiling clearance, secured truck courts, and immediate access to I-10, 101 beltway, and the future 202 beltway.