GLENDALE, Arizona, July 30, 2021 – Globally recognized mattress manufacturer MLILY has committed to a 1.25 million-square-foot lease at Glendale 303 (G303). The lease fills a just-completed, 569,520-square-foot industrial building and initiates an expansion of G303 to fulfill the tenant’s larger, single-building lease requirement.
The Class A industrial project is a development of international real estate firm Hines, with funds managed by Oaktree Capital Management L.P. (Oaktree). When complete, G303 will become the largest single-building Hines development to date in the U.S.
Managing Director Bill Honsaker and Senior Vice President John Lydon from the Phoenix office of JLL represented Hines in the lease transaction. Payson MacWilliam and Yang Chen of Colliers International represented the tenant. The Southwest Division of Graycor Construction Company serves as the project’s general contractor.
“The rise of e-commerce that we experienced during the pandemic has created a new, steady level of demand for modern logistics and supply-chain-savvy industrial space, particularly in prime geographic and demographic locations like Phoenix,” said Courtney Schneider, Director at Hines who oversees industrial development for Arizona and Colorado. “G303 was designed to meet the needs of a modern industrial user just like MLILY. We are thrilled to welcome them.”
According to the latest JLL Phoenix industrial market report, the Valley recorded more than 5 million square feet of positive net absorption during the first two quarters of 2021, marking the 31st and 32nd straight quarters of positive Phoenix industrial absorption dating back to the second quarter of 2013.
“Within the Phoenix industrial market, requirements for Class A warehouse and distribution space have been particularly high – easily outpacing demand for any other type of industrial product,” said Honsaker. “G303 was in a prime position to capitalize on that trend with a high-quality building that was designed to expand and is strategically located within the Valley’s hottest industrial corridor – at the center of a very young and diverse talent pool.”
G303 is located immediately off the Loop 303 freeway between Glendale Avenue and Bethany Home Road. Conceived as a two-phase project, the building was designed with the ability to combine into a larger building for a single, significant user like MLILY.
“Hines and Oaktree wisely created scalability at G303,” said Todd Ostransky, Graycor Construction Company Vice President of the Southwest Division. “That is a very attractive option for a company looking to plant a flag and grow in our immensely popular industrial sector and was the perfect solution for MLILY.”
The newly completed G303 building features 40-foot clear height, 60-foot speed bays, abundant dock-high loading doors and highly functional footprints. It features a sleek exterior design, with the ability to accommodate more than 550 cars. The project also includes a basketball court amenity for employees to enjoy during break times.
Construction on the G303 building expansion will begin during Q4 2021 and complete by Q4 2022.
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JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion, operations in over 80 countries and a global workforce of more than 91,000 as of March 31, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated.
In Phoenix, JLL is a market leader employing more than 646 of the region’s most recognized industry experts offering office, industrial, retail, healthcare and data center brokerage, tenant representation, facility and investment management, capital markets, multifamily investments and development services, and related services within the real estate leasing, investment and management process. In 2020, the Phoenix team completed 75 million square feet in lease and sale transactions valued at $2.2 billion, directed $186 million in project management and currently manages a 54.2 million-square-foot portfolio.
For further information, visit www.jll.com.
Hines is a privately owned global real estate investment firm founded in 1957 with a presence in 240 cities in 27 countries. Hines oversees a portfolio of assets under management valued at approximately $160.9 billion¹, including $81.7 billion in assets under management for which Hines serves as investment manager, and $79.2 billion representing more than 172.9 million square feet of assets for which Hines provides third-party property-level services. Historically, Hines has developed, redeveloped or acquired approximately 1,450 properties, totaling over 485 million square feet. The firm has more than 180 developments currently underway around the world. With extensive experience in investments across the risk spectrum and all property types, and a pioneering commitment to ESG, Hines is one of the largest and most-respected real estate organizations in the world. Visit www.hines.com for more information. ¹Includes both the global Hines organization as well as RIA AUM as of December 31, 2020.
About Graycor Construction Company Inc.
Graycor Construction Company Inc. is a leader in managing building construction and interiors projects throughout North America. In Arizona, Graycor combines more than 30 years of local subcontractor and partner relationships with the company’s 100 years of national experience in the cold storage, corporate, cultural/educational, food processing, living and lodging, logistics and distribution, manufacturing and retail markets. For more information, visit www.graycorconstruction.com.