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Active Industrial

Foundry District Industrial Portfolio

Phoenix, AZ

Asset Type Industrial
Location Phoenix, AZ
Year Acquired 2019–2023
Square Footage 1,100,000 SF
Occupancy Rate 96%
Current Value $265M
Property Overview

A nine-building, 1.1-million-square-foot portfolio of infill light-industrial assets aggregated across three transactions in supply-constrained urban submarkets.

Investment Thesis

Urban infill light industrial benefits from last-mile logistics demand while facing structural supply decline as land converts to higher uses.

Strategy

Aggregate sub-institutional assets into an institutional-scale portfolio, professionalize management, and capture the portfolio premium at exit.

Market Overview

Phoenix infill industrial vacancy remains below 5% as semiconductor-driven supplier demand compounds traditional last-mile tenancy.

Value Creation Plan

Rolled 62% of legacy leases to market, implemented common-area capital program, and unified the portfolio under a single management platform.

Financial Highlights
$178M (aggregate) Acquisition Value
$265M Current Valuation
$15.9M NOI
6.0% Cap Rate
19.5% IRR
1.8x Equity Multiple
Investment Timeline
  1. Q3 2019

    Initial Acquisition

    Closed first four-building tranche.

  2. Q2 2023

    Portfolio Completion

    Final tranche closed, reaching 1.1M SF.

  3. Q1 2025

    Leasing Milestone

    Achieved 96% portfolio occupancy at market rents.