Dermody Properties Breaks Ground on one of the Largest Industrial Parks in Arizona History
Dermody Properties, a national private equity real estate investment, development and management company focused exclusively on the logistics real estate sector, broke ground on LogistiCenter℠ at Copperwing, Wednesday, April 19, 2023, commencing construction for one of the largest business parks in Arizona history.
LogistiCenter℠ at Copperwing is located at the Northern Parkway Expressway & Dysart Road in El Mirage, Arizona, a suburb of Phoenix. Phase I of the project includes construction of the first two buildings, totaling 566,602 square feet of Class A logistics space designed for modern use. When completed, the 961-acre site will feature more than 10 million square feet of distribution space with individual buildings accommodating a wide range of user sizes up to 1.5 million square feet.
"With a project of this scale, Dermody Properties intends to create a best-in-class industrial park through sustainable design and construction to meet the supply chain requirements of national, regional and local companies," said Pat Gallagher, Southwest Region Partner at Dermody Properties. "The Phoenix metropolitan area is one of the fastest-growing regions in the country and is experiencing unprecedented industrial growth, having reported more than 26 million square feet of annual net absorption in 2022."
Located with immediate access via two new full interchanges to the currently under construction Northern Parkway Expressway, the park is approximately 3.5 miles from the Loop 101 and Loop 303 freeways. The logistics park is expected to attract large distribution users and companies with manufacturing operations as it provides access to all of the southwestern U.S. within a days' drive and features an abundant labor pool with a workforce of nearly 850,000 people within 20 miles.
Industrial zoning was already in place for the land when acquired by Dermody Properties. In addition, the property is within an approved Foreign Trade Zone (FTZ), meaning companies within the park that are active users of FTZ can receive up to a 72% reduction in real estate and personal property taxes. Several recent and under construction infrastructure improvements in addition to the new Northern Parkway Expressway include new water and sewer service to the site along with new roads and availability of abundant electrical power.
"This development will have a significant impact on the Phoenix market, including an influx of jobs and economic benefits," said Douglas A. Kiersey, Jr., CEO and President at Dermody Properties. "For Dermody Properties, this investment is consistent with our strategy of sourcing projects dedicated to serving the distribution network needs of both new and existing customers."
Pat Feeney Jr., Tyler Vowels and Dan Calihan of CBRE are the leasing brokers for the logistics park.
"This year, we have seen substantial net absorption across Southwest Valley's industrial market," said Feeney. "Adding LogistiCenter℠ at Copperwing to this market will provide tenants with a large selection of warehouse distribution and manufacturing alternatives in an ideal location with accessible distribution routes and a great workforce nearby."
Dermody Properties acquired the property in late 2021 from the John F. Long Family Trust, known for developing more than 30,000 homes over four decades, including Arizona's first master-planned community, Novo Development, which has been involved with the project since its inception, will continue to be involved with this new venture.