For Lease or Sale | Prime Mesa ±71,272 SF Flex Industrial

Highlights:

• STRUCTURE: ±71,272 SF freestanding industrial building on a ±1.90-acre lot with 15'325' clear heights. Approximately 60% of the space is temperature controlled/insulated.
• LOADING: 3 external docks, 3 levelators, and 2 grade- level doors provide versatile loading options for various operational needs. Heavy-duty HVLS warehouse fans in renovated sections.
• POWER: 600A | 120/208V 3-Phase & 120/240V 3- Phase | 4W | 65K AIC power capacity supports manufacturing, distribution, or technology operations.

Description:

DWG Capital Group, as the exclusive advisor, is pleased to present a new off-market acquisition opportunity: 260 S. Hibbert, Mesa, Arizona. This 71,272-square-foot tilt-wall industrial asset is situated in one of the fastest-growing submarkets of the Phoenix MSA. The Mesa area is burgeoning with development, surrounded by new projects, and features nearly non-existent urban infill inventory for industrial spaces between 50,000-150,000 square feet.

The property will be delivered vacant, offering a compelling value-add opportunity through repositioning and leasing at market rents of $13–$15/SF NNN for a single tenant, or $15-$19 for a small bay conversion. With an attractive acquisition basis of $155 per square foot, this project is strategically positioned to capitalize on strong tenant demand and the scarcity of comparable inventory in the urban core. By securing a new tenant and executing the necessary repositioning, a sophisticated investor can unlock substantial value and achieve attractive, high-IRR returns within a shorter timeframe of 6–18 months through this highly marketable industrial redevelopment.

KEY FEATURES
• Prime Urban Infill Location: Nestled near ASU and the Broadway Corridor, this site benefits from adjacent high-value redevelopment activity and robust tenant demand.
• Infrastructure: Featuring multiple loading docks, superior power infrastructure, and 30 parking spaces, the property is highly flexible for diverse industrial tenants.
• Value Creation Opportunity: Delivered vacant for white-boxing, unlocking long-term tenant opportunities at premium rents.

THE PROPERTY
The property is a free-standing manufacturing and distribution facility comprises approximately 71,272 square feet of space, 3 external docks, a 18-20-foot+ ceiling height and 3 external levelators. The property sits on approximately 1.90 acres of land and is located within a downtown Mesa. Notably, this structure contains potential cold storage if ever re-tenanted with approximately 60% of the building also being temperature controlled and insulated.

THE LOCATION
Mesa, AZ in the Phoenix MSA offers a prime location in an up and coming area with a path of significant gentrification and progress. Offering easy access to highways US-60, Loop 101, and Loop 202, the 1.90-acre property is located north of Broadway Road near prominent businesses. The Phoenix MSA is a top 5 industrial market with exceptional stability via its low vacancy rates, double-digit rent growth and inherent appreciation.

THE MARKET
Located in the thriving East Valley region, Mesa's industrial submarket has experienced a ±15.8% increase in rents over the past 12 months. Cap rates in the immediate area average between ±5.85% and 6.25%, presenting a rare, high-yielding investment opportunity supported by superior market fundamentals.

PROFORMA VALUES
With area rents in Mesa ranging between $13-$15 PSF and an average market rent of $14.60 PSF per CoStar, the repositioning and placement of a new lease could yield a future NOI of $1,011,920. At a 6% cap rate, this translates to a potential proforma value of $16.8M or closer to $19M via a small bay conversion, and $15-$19 rents. Additionally, market reports predict the average price per square foot within a 3-mile radius (currently at $180 PSF) to exceed $225–$250+ PSF over the next 5 years, presenting a compelling value-add opportunity for investors.

1 Space Available

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