Intersection, which prides itself on value-driven commercial real estate strategies, has acquired KeyWest Plaza, a 92,750 SF multi-tenant flex industrial property in Gilbert, Arizona, for $ 13.25 million.
The acquisition of KeyWest Plaza, 700-734 N. Golden Key St., in Gilbert, was completed off market and represents the second acquisition in Intersection’s post-pandemic industrial investment strategy that is focused on $ 5 million to $ 20 million projects in markets west of Denver.
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“Given the competitive nature of the market for this kind of product, we have to recognize the great work done by our brokerage partners at Commercial Properties. They have worked collaboratively with us for months in Metro Phoenix and helped us find a great deal off market, ”said Anton Myskiw, Intersection Senior Analyst and a Phoenix native who sourced the deal.
The Leroy Breinholt Team of Leroy Breinholt, David Bean, Cory Sposi, Cory Breinholt and Kelli Jelinek of the Phoenix office of Commercial Properties, Inc., brokered the deal on behalf of the seller, Golden Key Industrial Park, LLC.
“Intersection is relatively new to this market, but quickly understood where the growth opportunities could be found. We look forward to working with them as they execute the strategy on this property, ”Bean said.
Intersection plans to complete significant improvements on the property that will improve curb appeal and the overall tenant experience. Renovations include new paint, and parking lot and landscape upgrades. Intersection will also implement a new tenant signage program providing tenants with greater visibility.
Intersection intends to create a best-in-class flex industrial asset to meet the demands of the Gilbert submarket. Commercial Properties will continue to manage and lease the property for Intersection.
The investment was syndicated to a group of Intersection’s high net worth investors. It is the company’s eighth acquisition. Intersection has now crossed over $ 100 million in historical deal transaction volume.
“Multi-tenant flex with a value-add component represents a very good risk profile for our investors. The Southeast Valley submarket in Metro Phoenix has great fundamentals and we can see a clear path to demand for high-quality product like KeyWest Plaza. Fundamentally, that is what we set out to do on every deal, ”said Rocco Cortese, Managing Director with Intersection.