Phoenix Acquires 29.5-Acre Industrial Property

Categories: Business NewsConstructionManufacturingNews

Aerial view showing the newly acquired industrial property in Phoenix and its proximity to the Rio Salado River.

News Summary

The city of Phoenix has purchased a 29.5-acre industrial site near the Rio Salado River for $29.58 million. This acquisition, part of the Rio Reimagined initiative, aims to enhance local development while addressing community concerns about industrial zoning. Despite pushback, the project is expected to create approximately 1,000 jobs and support Arizona’s growing semiconductor and manufacturing sectors.

Phoenix – The city of Phoenix has acquired a 29.5-acre industrial property located near the Rio Salado River for $29.58 million. The purchase, confirmed by a city spokesperson, was made from Scottsdale-based Atlas Capital Partners LLC, with collaboration from OakPoint Real Estate.

The property, situated at 3030 S. Seventh Street, south of the Rio Salado River and close to Sky Harbor International Airport, includes a 42,500-square-foot industrial building that is currently leased until 2028. This land acquisition is part of the larger Rio Reimagined initiative, which aims to invest in both the Rio Salado and Gila River corridors.

The RIO PHX plan, a key aspect of the Rio Reimagined initiative, focuses on revitalizing a 20-mile stretch along the Rio Salado corridor. The acquired industrial property is strategically positioned to support Arizona’s expanding semiconductor, manufacturing, and energy sectors.

Transaction Background and Community Concerns

Atlas Capital purchased the property in 2012 as an investment. The acquisition by the city was facilitated by a community initiative funded through a federal grant that engaged local residents and business owners. However, community members have expressed concerns regarding the area’s industrial zoning. Many envisioned a mixed-use development that includes housing, retail, and recreational spaces, rather than solely industrial use.

A proposed 83-acre industrial park is part of ongoing developments along the Rio Salado in south Phoenix, which aims to address the historical context of industrial zoning in the area, contrasting with broader community aspirations. A community organization, SoPho Convening, has advocated for developments aligning with local desires, rather than prioritizing industrial installations.

Economic Impact and Future Development

The developer associated with the site, Merit Partners, anticipates the project will create approximately 1,000 jobs during and after construction. However, there is pushback from community members who are contesting the use permit for industrial development. Their primary concerns revolve around potential negative impacts on local air quality and property values.

The industrial project must adhere to restrictions established by the Rio Salado Interim Overlay District to mitigate environmental impacts. Notably, despite the community’s strong opposition, earlier permit hearings have provided the project with initial approvals.

Looking Ahead

Future community development plans include a bond proposal aimed at acquiring land for revitalization projects, indicating persistent support for alternative visions along the Rio Salado. Ongoing discussions reflect the community’s desire for development that encompasses cultural and educational facilities, overcoming previous challenges linked to high remediation costs associated with historically used landfill sites.

As Phoenix continues to grow and evolve, the city’s investment in this industrial property embodies a broader strategy aimed at revitalization while balancing the aspirations and concerns of the local community.