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Press Release, August 13, 2021

ARA Acquires Class A Industrial Asset in Sought-After Phoenix Submarket

Los Angeles, CA (August 13, 2021) – American Realty Advisors (“ARA”), an institutional fund manager with more than $10.1 billion in assets under management, has acquired Goodyear Logistics Center, a Class A industrial asset located in Goodyear, AZ. The 901,700 SF manufacturing/logistics warehouse is situated on 50 acres in the Southwest Valley submarket within the Phoenix MSA, one of the most active industrial markets in the U.S.

Goodyear Logistics Center is strategically located in a Magnet Foreign Trade Zone, which will allow for an estimated 73% personal and real property tax savings for qualifying tenants. No other building on the West Coast over 500,000 SF is designated as a Magnet Foreign Trade Zone. Its location in the West Coast trade hub also enables a distribution network capable of reaching more than 35 million people within a 24-hour drive time and provides an attractive cost-alternative to tenants who aren’t able to find suitable industrial space in more expensive coastal markets.

“Investing in this top-quality core asset located in one of the most dynamic markets on the West Coast is well-aligned with our strategy to target industrial assets that are positioned for strong performance over time,” says Austin Maddux, Executive Vice President, Deputy Portfolio Manager at ARA. “Goodyear Logistics Center is situated in a submarket widely known for its institutional quality assets and top-tier tenants. We’re excited to expand our portfolio into the region and capitalize on its continued growth.”

The Phoenix MSA has an industrial base of 340.5 MSF, recording 13.1 MSF of net absorption in 2020 - a new high in the Phoenix market.

“This investment allows us to capitalize on the strengthening fundamentals of the Phoenix industrial market. The acceleration of both tenant and investor interest in the metro throughout the last several years has led to higher rents, tighter vacancies and unprecedented appreciation in property values,” says Patrick Lataitis, Associate Director of Investments for ARA. “While this has led to additional supply, Goodyear Logistics Center is situated in an established industrial pocket with great highway adjacency and plenty of drivable retail amenities. All factors that provide for more barriers to entry relative to submarkets with ample land availability – particularly for product in this size range.”

Goodyear Logistics Center is located one mile from the I-10 freeway, which provides six-to-seven-hour drivetimes to the Ports of Long Beach and Los Angeles. It is directly adjacent to the Goodyear airport and within 22 miles of downtown Phoenix and the Phoenix Sky Harbor International Airport. Numerous rail lines also provide Goodyear with direct access to 23 states.

“We view this as one of the best locations for industrial product in the Western Region and see significant long-term upside potential in the investment,” says Lataitis. 

The Goodyear Business Corridor is currently occupied by a diverse range of tenants across a variety of industries. Nearby corporate tenants include Chewy.com, Microsoft, Amazon, and FedEx.

“Goodyear offers excellent labor availability as well, with a workforce population of 1.56 million within a 20-minute drive, high-quality master-planned communities, excellent schools, access to healthcare and several nearby major league sports venues. Goodyear continues to see very strong demand in both e-commerce and warehousing users in particular. Given both the locational and physical attributes of the asset, we believe it is well positioned to drive increased returns for our investors,” adds Lataitis. 

Built in 2018, the facility features state-of-the-art building specifications including cross-dock configuration with 161 dock-high doors and 8 grade doors, 56’ x 50’ column spacing, 190-foot-deep fenced full concrete truck courts, full circulation via private access drives, ESFR sprinklers, 40-foot minimum clear height, energy efficient clerestory windows, above-market power provision and abundant employee parking with 551 spaces.

Goodyear Logistics Center is located at 575 S. 143rd Avenue, Goodyear, AZ. Congratulations to the seller and its representative CBRE National Partners on a successful closing. The property is being managed by Lincoln Property Company and is currently being leased by Cooper Fratt of CBRE.

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