News Summary
Shopoff Realty Investments has secured $52 million in financing from Peachtree Group to develop The Block at Elliot, a 270-acre industrial project in Mesa, Arizona. The funds will support grading, street improvements, and utility installation. Approved for annexation into Mesa, this site aims to accommodate high-demand industrial facilities, tapping into the region’s logistics hub. The project is set to include 12 to 15 structures, each averaging 500,000 square feet, catering to tech giants and other industries despite potential market challenges.
Mesa, Arizona – Shopoff Realty Investments has secured $52 million in financing from Peachtree Group for the development of The Block at Elliot, a major industrial project spanning 270 acres of unused land in Mesa, Arizona. This financing will be directed towards essential next phases of development, which include grading work, offsite street improvements, and the installation of utilities.
The Block at Elliot was purchased by Shopoff Realty in 2022 and has received the necessary approvals to be annexed into the city of Mesa, located roughly 20 miles east of downtown Phoenix. Mesa officials, alongside Shopoff Realty, are currently in the process of reviewing and finalizing the project’s development layout and product mix, which will ultimately define the scope of the industrial park.
A general contractor has been appointed for the project, though their identity has not yet been revealed. Grading operations are anticipated to begin later this year, indicating a significant move forward for the project.
Location and Market Demand
The Block at Elliot aims to transform former dairy farmland into an industrial park, strategically situated within a thriving logistics hub. Mesa’s industrial market is demonstrating strong activity, with a current vacancy rate reported to be under 7%. This makes the location highly appealing for future industrial tenants.
The project’s location benefits from proximity to the Phoenix-Mesa Gateway Airport and major transportation routes, increasing its logistical attractiveness for businesses. Positioned within the Elliot Tech Corridor, the site is expected to draw high-profile tech companies, including giants like Meta and Amazon.
The development plans include the construction of between 12 to 15 structures, with each building averaging around 500,000 square feet to fulfill the substantial demand for modern, large-scale industrial facilities. A report from CBRE highlights an unmet demand exceeding 23 million square feet for industrial space in the Phoenix-Mesa Gateway area.
Financing and Development Strategy
Peachtree Group’s financing arrangement involves a bridge loan customized for early-stage development endeavors. This approach stands in contrast to traditional banks, which tend to prefer lending only after full property stabilization has been achieved. With this financing structure, Shopoff Realty is leveraging the flexibility offered by private credit, allowing for a more agile response to the complexities associated with land development, such as entitlements and infrastructure challenges.
The Block at Elliot is strategically designed to attract high-value tenants from various sectors, including technology, aerospace, and electric vehicle logistics. However, potential challenges exist, such as the risk of overbuilding in nearby markets, which could lead to increased vacancy rates in the future.
The partnership with Peachtree Group is seen as a strong endorsement of Shopoff Realty’s ability to execute its development plans effectively. Additionally, Shopoff Realty anticipates selling pad sites at the development to industrial owners within the subsequent 24 months, which reflects a proactive strategy to ensure the project’s success and fit within current market demands.
Deeper Dive: News & Info About This Topic
- Orange County Business Journal
- Wikipedia: Mesa, Arizona
- AIvest News
- Google Search: Shopoff Realty Investments
- Commercial Observer
- Google Scholar: industrial development Arizona
- Opportunity Zones
- Encyclopedia Britannica: industrial parks
- Construction Dive
- Google News: Mesa industrial development
Author: STAFF HERE PHOENIX WRITER
PHOENIX STAFF WRITER The PHOENIX STAFF WRITER represents the experienced team at HEREPhoenix.com, your go-to source for actionable local news and information in Phoenix, Maricopa County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Waste Management Phoenix Open, Cactus League Spring Training, and Arizona State Fair. Our coverage extends to key organizations like the Greater Phoenix Chamber of Commerce and Visit Phoenix, plus leading businesses in technology and healthcare that power the local economy such as Intel and Banner Health. As part of the broader HERE network, including HERETucson.com, we provide comprehensive, credible insights into Arizona's dynamic landscape.
