Arc Capital Partners and SKB Expand Industrial Investment Portfolio
Arc Capital Partners (Arc), in collaboration with ScanlanKemperBard (SKB), has made significant strides in the industrial real estate sector with the purchase of two fully leased advanced manufacturing facilities. These properties, located in a highly sought-after market, emphasize the strong demand for industrial space and the trend towards advanced manufacturing within the region.
Insight into the Acquisition
The buildings acquired by Arc and SKB boast a substantial total of 194,000 rentable square feet, featuring modern infrastructure tailored for advanced manufacturing processes. With impressive amenities, including around 8,000 amps of power and a generous outdoor storage area spanning five acres, these facilities serve the needs of various tenants efficiently. The properties are currently leased to three tenants, indicating their attractiveness within an area characterized by a sub-5% vacancy rate, underscoring Gilbert's dynamic market conditions.
Benefits of the Location
Strategically located less than a mile from major freeways such as US 60 and Loop 101, the property provides excellent connectivity for industrial operations. This extensive accessibility to regional transportation routes enhances the appeal for businesses looking to establish or expand their operations in the area.
Strategic Opportunity in a Growing Sector
Industry experts see great potential in this property, specifically due to continual growth in the region. As noted by Neville Rhone, Managing Partner at Arc, there is a strong belief that supporting investments in semiconductor manufacturing will contribute positively to property values, especially following the CHIPS and Science Act. This acquisition represents an advantageous opportunity to leverage regional industry growth.
Competitive Advantages
Dixon Hinderaker, Vice President of Acquisitions at SKB, highlighted the competitive traits of these properties, emphasizing their outdoor storage capabilities and advanced power infrastructure, which are crucial for attracting high-quality advanced manufacturing and light industrial tenants. This flexibility and readiness align perfectly with the evolving needs of the market.
Value-Adding Enhancements Planned
Looking ahead, Arc and SKB are committed to realizing the full potential of their investment by implementing strategic property improvements. By focusing on deferred maintenance, optimizing loading efficiencies, and modernizing the outdoor aesthetics, they aim to enhance the overall value and attractiveness of the facilities for both current and prospective tenants.
Continuous Commitment to Market Growth
This acquisition signifies SKB’s dedication to the Phoenix market, marking their fifth investment in this thriving region. Charles Ferguson, Senior Vice President of Asset Management at SKB, expressed enthusiasm about this collaboration with Arc, highlighting its alignment with SKB’s strategy of focusing on supply-constrained submarkets, which are key to long-term growth.
About Arc Capital Partners
Founded in 2013, Arc Capital Partners has established itself as a prominent player in the real estate investment landscape, specializing in transforming mixed-use environments to meet contemporary demands. The firm, led by principals with extensive experience managing over $10 billion in transactions, is dedicated to identifying significant investment opportunities within high-growth markets.
About ScanlanKemperBard (SKB)
ScanlanKemperBard (SKB) focuses on delivering sustainable growth across various real estate sectors, including office, industrial, and mixed-use properties. Through a hands-on approach to property management and strategic investments, SKB aims to provide exceptional long-term value for their clients and stakeholders.
Frequently Asked Questions
What types of buildings did Arc Capital Partners and SKB acquire?
They acquired two fully leased industrial and advanced manufacturing buildings, totaling 194,000 square feet.
What strategic advantages do these properties offer?
These properties feature substantial outdoor storage, advanced power infrastructure, and a location near major highways, making them ideal for tenants.
How does the acquisition benefit the companies involved?
The purchase aligns with regional growth trends, particularly in the advanced manufacturing sector, and offers potential for long-term value appreciation.
What improvements are planned for the acquired properties?
Arc and SKB plan to address deferred maintenance, enhance loading efficiencies, and modernize the facility's appearance.
How significant is the industrial market in Phoenix?
The Phoenix industrial market is among the fastest-growing in the nation, characterized by low vacancy rates and strong demand for advanced manufacturing facilities.
