Dallas-based Dalfen Industrial is growing its industrial holdings in Arizona with the delivery of two new projects and an acquisition.
The company recently acquired a nearly 110,000-square-foot industrial building located at 3405 S. 5th St. in Phoenix for $18.6 million in all cash.
It bought the property from Oxford Properties Group in November through a deal sourced through Cushman & Wakefield. The building was fully leased to Collins Aerospace, a subsidiary of Raytheon owner RTX Corp., at the time of the sale.
“With the property fully leased to a credit tenant at significantly below-market rents, we’re positioned for strong cash flow in the short term, with substantial upside at lease roll over,” said Rich Weiss, head of Dalfen’s west region, in a statement.
The property is located near Phoenix Sky Harbor International Airport and downtown Phoenix and access to major routes including Interstates 17 and 10.
The acquisition will add to two projects Dalfen recently completed. It delivered the Superstition Commerce Park in Mesa with six buildings totaling 969,211 square feet and the Chandler Airpark with two buildings totaling 219,440 square feet.
The Chandler Airpark has also been leased to Fuse for a flexible workspace for entrepreneurs and business owners called Fuse Flex Space. The Fuse portion totals about 28,000 square feet including office and warehouse space.
Dalfen now owns or operates 1.8 million square feet of industrial space in the Phoenix area, including the 418,000-square-foot West Valley Logistics Center in Surprise and the 110,000-square-foot Gilbert Distribution Center in the East Valley.