JLL Capital Markets announced today that the sale of Pulliam Innovation Park for $ 18.26 million has been completed and acquisition financing for $ 11.9 million has been secured. The sale was a record price for the total price and per square foot ($ 200 per square foot) for industrial, office, or flex property in Flagstaff.
JLL represented the seller, Kentwood Ventures, based in Phoenix. The buyer acquired the four-building portfolio on a 1031 exchange and hired a separate JLL team to place the acquisition loan with a state regional bank.
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The Pulliam Innovation Park was developed in phases between 2000 and 2007 by Kentwood Ventures, who designed the multi-tenant property for a variety of uses. 92 percent of the park is occupied by a diverse list of tenants, including the Translational Genomics Research Institute (TGen); Unisource Energy Services; Machine Solutions, Inc .; FAA; Volcanic Materials Company; POBA Medical and other tenants who have invested in their space. The accessible park is located on 21 acres at 2051, 2951, 3001 and 3051 W. Shamrell Blvd. right off Interstate 17 and next to Pulliam Airport.
“This was a complex transaction that included a 1031 stock exchange buyer, a long lease in the City of Flagstaff, and very limited comparable sales and leases in the established Flagstaff market,” said Jim Zemezonak, partner at Kentwood Ventures. “Brian Ackerman and the JLL team have done a great job training domestic and international buyers to make this a desirable acquisition opportunity. The sales process has attracted a buyer who will continue to improve the property after 20 years of ownership by the seller. “
The JLL Capital Markets Investment Sales Advisory team, representing the seller, was led by Managing Director Brian Ackerman and Senior Director Ben Geelan. Managing Director Tony Lydon provided market and leasing know-how.
JLL Capital Markets’ debt placement team representing the new owner also included Director Jason Carlos.
“Kentwood Ventures has developed a property that has had a low historical vacancy rate with a strategic balance of corporate and technology users that has grown over the years,” said Ackerman. “This organic growth as well as a flexible and functional design have generated constant demand from high-quality office, research and manufacturing tenants in the Pulliam Industrial Park.”
Kentwood Ventures, based in Phoenix, is an investor and developer; Its Kentwood 303 project, a 270,000-square-foot industrial facility designed for tenants in mid-bays, is located in Glendale, Arizona and will be completed in August 2021.
JLL Capital Markets is a global full-service provider of capital solutions for real estate investors and users. The company’s in-depth local market and global investor knowledge provides first-class solutions for clients – whether it be investment advice, debt placement, equity placement or recapitalization. The company has more than 3,700 capital market specialists worldwide with branches in almost 50 countries.
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