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Arc Capital Partners and SKB Expand Portfolio in Arizona

In a strategic move reflecting confidence in the growth of the industrial sector, Arc Capital Partners (Arc) has joined forces with ScanlanKemperBard (SKB) to acquire two fully leased advanced manufacturing facilities located in the highly sought-after Gilbert submarket of Arizona. The acquisition encompasses two freestanding buildings situated at 1250 and 1300 North Fiesta Blvd, which collectively offer a robust 194,000 rentable square feet of premium industrial space.

The two properties are notable not just for their size but for their prime attributes, including substantial outdoor storage area spanning five acres and a powerful electrical infrastructure providing around 8,000 amps. This makes them exceptionally suited for the needs of advanced manufacturing tenants. With a microeconomic landscape characterized by strong demand and minimal supply, the vacancies in this submarket are less than 5%, clearly demonstrating a robust market environment.

Additionally, their strategic location less than a mile from major transportation arteries like US 60 and Loop 101, with easy access to Interstate 10, further enhances their appeal. This access is pivotal for industrial tenants who are keen on seamless connectivity to major regional transportation routes.

Strategic Vision and Regional Tailwinds

The excitement surrounding this acquisition is palpable among stakeholders. Neville Rhone, Managing Partner at Arc, expressed enthusiasm, stating, "We are excited to partner with SKB on the acquisition of this fully occupied, high-quality asset. The property is well-positioned to benefit from strong regional tailwinds, given recently announced semiconductor manufacturing investments supported by the transformative CHIPS and Science Act."

As manufacturing and industrial activity continue to flourish in the region, the buildings present immense potential for long-term value enhancement, aligning with regional growth trends. Dixon Hinderaker, Vice President of Acquisitions at SKB, highlighted the facilities' key competitive advantages, noting, "These assets provide key competitive advantages, including substantial outdoor storage and superior power infrastructure. This combination makes them highly desirable for advanced manufacturing and light industrial tenants seeking flexible, well-equipped spaces in prime locations."

Future Enhancements Planned

Demand for improvements and enhancements to add value to the properties has been noted. Arc and SKB plan to make targeted improvements that include addressing any deferred maintenance issues, optimizing loading efficiency, and updating exterior aesthetics to meet modern market expectations. Such upgrades are critical, as they aim to increase the property's overall value and appeal to both existing and prospective tenants alike.

Commitment to the Phoenix Market

This acquisition marks significant progress for SKB, highlighting their commitment to the Phoenix market, as it represents their fifth active investment in the region. Charles Ferguson, Senior Vice President of Asset Management at SKB, proclaimed, "We are thrilled to collaborate with Arc to add this strategic asset to our portfolio. This aligns with our focus on supply-constrained submarkets and reinforces our commitment to Phoenix's continued growth."

About Arc Capital Partners and SKB

Arc Capital Partners is recognized as a leading institutional real estate owner and investment manager, established in 2013. The firm specializes in transforming mixed-use environments, targeting middle-market investments in regions with robust demographic growth fundamentals. As a diverse-owned firm, Arc employs a range of investment strategies, from preferred equity to direct investments, focusing on value-added returns and risk mitigation.

On the other hand, ScanlanKemperBard (SKB) is a commercial real estate investment and development firm with an emphasis on value creation through thoughtful investment strategies and proactive management. By delivering sustainable results for both their tenants and investors, SKB continues to expand its influence in the commercial real estate landscape.

In conclusion, the acquisition of these two advanced manufacturing facilities signifies not just an expansion for Arc and SKB, but a strong signal of the growth potential inherent in the Gilbert, Arizona submarket. As industrial activities continue to escalate, these assets are poised to serve as critical nodes in a dynamically evolving supply chain.