A construction loan of US$224.07 million has been secured by Wharton Industrial and Madison Ventures Plus for the construction of The HUB @ 202 in Mesa, Arizona, a 1.5 million-square-foot industrial park. Cushman & Wakefield stated that they will be the real estate company’s exclusive advisor during the purchase and construction financing procurement process. The HUB @ 202, which is expected to be 1,497,453 square feet when finished, stands on a 101-acre property tract that will include an 11-building Class A master-planned industrial park. MSD Partners, L.P. supplied project financing, which was founded just over a decade ago by the partners of MSD Capital, L.P., Michael Dell’s family investment firm and the founder and CEO of Dell Technologies.
The facility has been developed with the modern industrial tenant in mind, with clear heights ranging from 28′ to 36′, substantial truck and vehicle parking, grade and dock-high loading doors, and practical divisibility with a choice of bay sizes. Construction is expected to begin in the second quarter of 2022. The site is one minute from Arizona Route 202, the main business artery linking Phoenix to the Southeast Valley, and three minutes from the Phoenix-Mesa Gateway Airport. The HUB @ 202 is one of the few continuous properties of size in the heart of Phoenix’s Southeast Valley submarket. Over the next five years, the Southeast Valley is expected to top the country in an industrial rent increase, with an anticipated 32 percent.
Commentary on The Hub @ 202 in Arizona
“The HUB @ 202 offered a compelling opportunity for capital markets to invest in Phoenix’s Southeast Valley region, which has been one of the country’s fastest-growing industrial submarkets over the last two years.” “We are thrilled to have represented this solid relationship and are particularly pleased with the full-stack financing acquired from an institutional capital provider in MSD,” stated Cushman & Wakefield Capital Markets team member John Alascio.