CA-Based Developer Spends $667,000 for Arizona Inroad

MESA, AZ-A Southern California-based partnership has purchased nearly five acres in far east Mesa, where it’s lining up an October groundbreaking on a 60,000-sf storage facility. Power Partners LLC, headed by Fred Simanek, paid $667,000 to Phoenix-based Augusta Ranch Development LLC for the site.

The land is situated at the northeast corner of Ellsworth and Guadalupe roads in Augusta Ranch, a master-planned community and one of the East Valley’s fastest-growing residential areas. Power Partners’ project is its first in Arizona. The firm, which has three such facilities in California, pegs development costs at $2 million. David Newquist of CB Richard Ellis’ Phoenix office represented the seller and Simanek handled his side of the negotiations.

Power Partners was attracted to that part of the East Valley because of the burgeoning residential growth, Simanek tells GlobeSt.com. “Within a three-mile radius there are about 5,500 homes that either about a year old or just coming out of the ground,” he says. “My juices get flowing when I see all the new homes coming out of the ground.”

In addition to Augusta Ranch, there are a number of residential projects that will add to the housing stock in the coming months, Simanek says. KB Homes owns 40 acres at the southwest corner of Ellsworth and Guadalupe roads. The plan calls for construction of 167 homes in the first phase and 100 townhomes to follow about 18 months later. Fairfield Residential has lined up land for a 220-unit apartment complex on the same corner.

Simanek says a storage facility is well supported based on the area’s population demographics. Each person in the United States, on the average, leases about three sf of storage space. Because the buy is on the Valley’s fringe, there is little competition.Power Partners will bring 50,000 sf or some 498 units out of the ground in the first phase. Another 10,000 sf or 100 units will follow in a second phase that will be built contingent upon the leasing pace of the initial undertaking, Simanek says.

The project also is located in a prime spot for commercial customers. The General Motors Proving Grounds is a mile south and is being master-planned by the City of Mesa. Officials right now are calculating how much land of the 5,500 acres will be dedicated to commercial and residential development.

In all, Augusta Ranch Development has sold 12 acres for commercial projects. Power Partners’ neighbors are Osco Drug and Aramark (Children’s World Learning Centers). Additional pads are dedicated to fast-food and service station uses. Last week, construction kicked off on the Children’s World Learning Center.