January 9, 2025 – Key West Business Park is a 96,400sf, 100% occupied Service Industrial property located in the affluent Gilbert submarket of Phoenix, AZ. The four-building property consists of 19 tenants with an average suite size of approximately 5,000sf, 16’-18’ clear heights, oversized 12’ x 14’ drive in doors, and approximately 20% office buildout. The Property caters to a wide array of tenants and aligns with CenterSquare’s Service Industrial thesis.
The investment is being made on a direct basis, on behalf of CenterSquare Value-Added Fund V. This was an off-market opportunity, sourced through CenterSquare’s established network of relationships. The business plan consists of marking rents to market and making various capital improvements to the Property including repainting, concrete repairs, and increasing cooling capacity in the warehouses by adding more air conditioning units. These improvements, combined with the institutional management of the Property, will allow CenterSquare to successfully execute its value-add strategy and drive meaningful growth in net operating income.
This transaction is the fifth Service Industrial investment in Fund V, and the first Fund V acquisition in the Phoenix market. This speaks to CenterSquare’s conviction in the Phoenix market, where we intend to grow our portfolio, and in the Service Industrial sector, which remains ripe for institutionalization.
“We’re excited to expand our portfolio into a new Service Industrial market,” said Victoria Madrid, Vice President for CenterSquare’s Private Equity Real Estate vertical. “This acquisition demonstrates our ability to execute our investment thesis across varied target markets nationally, and we look forward to continued expansion in the market enabled by our streamlined process.”
