Key Takeaways
- • Ares Real Estate fund acquired Marigold Two-Pack, a two-building Phoenix industrial portfolio totaling 237,765 square feet across Southwest Valley and Airport Area submarkets, for $43.1 million ($181.27 per square foot).
- • Fully leased portfolio at time of sale to six tenants across diverse industries including logistics, asset management, wholesale distribution, automotive parts, and HVAC equipment, positioning the assets for immediate cash flow generation.
- • Prime infill logistics locations with critical infrastructure proximity: Southwest Valley property within one mile of Loop 202 expansion and five miles of I-10 and I-17 with 13-minute Sky Harbor access; Airport Area facility 0.6 miles from I-17 and 2.3 miles from nation's ninth-busiest airport.
- • Ares Industrial Management assuming operational control, leveraging its established expertise as a leading owner-operator of logistics facilities to maximize portfolio performance and tenant relationships.
- • Institutional capital validation of Phoenix infill industrial submarkets, with JLL Capital Markets noting continued investor recognition of compelling fundamentals in the region's premium logistics-focused properties.
Summary
JLL Capital Markets announced the sale of Marigold Two-Pack on October 1, 2025, marking a $43.1 million transaction for a strategically positioned two-building industrial portfolio in Metro Phoenix. An Ares Real Estate fund acquired the asset at $181.27 per square foot, with Ares Industrial Management designated as the operating partner. The portfolio comprises 237,765 square feet across two premier infill submarkets: a 100,000-square-foot facility in Southwest Valley and a 137,765-square-foot asset in the Airport Area submarket.
The properties demonstrate strong operational metrics at acquisition. Both buildings were fully leased to a diversified tenant base of six companies spanning logistics, asset management, wholesale distribution, automotive parts, and HVAC equipment sectors. This full occupancy at closing mitigates lease-up risk and provides predictable income for the buyer. The portfolio features functional industrial design with 22- to 30-foot clear heights, secured gated yards, dock-high and grade-level loading capabilities, excess parking, and minimal office build-out—standard features for institutional-grade logistics facilities.
Location represents a critical value driver for both assets. The Southwest Valley property sits less than one mile west of the new Loop 202 expansion and within five-mile proximity to Interstate 10 and Interstate 17, delivering 13-minute access to Sky Harbor International Airport. The Airport Area facility captures premium infill positioning just 0.6 miles from Interstate 17 and 2.3 miles from Sky Harbor, which ranks as the nation's ninth-busiest passenger airport by traffic volume. These logistics-centric locations support supply chain efficiency and broad tenant appeal.
JLL Capital Markets' Senior Managing Director Ben Geelan and Senior Director Greer Oliver represented the seller. Oliver commented that "institutional capital continues to recognize the compelling fundamentals of Phoenix's infill industrial submarkets," underscoring ongoing investor appetite for logistics properties in well-located, supply-chain-proximate submarkets. The transaction reflects sustained institutional interest in Phoenix's industrial market amid broader real estate capital repositioning.
The properties demonstrate strong operational metrics at acquisition. Both buildings were fully leased to a diversified tenant base of six companies spanning logistics, asset management, wholesale distribution, automotive parts, and HVAC equipment sectors. This full occupancy at closing mitigates lease-up risk and provides predictable income for the buyer. The portfolio features functional industrial design with 22- to 30-foot clear heights, secured gated yards, dock-high and grade-level loading capabilities, excess parking, and minimal office build-out—standard features for institutional-grade logistics facilities.
Location represents a critical value driver for both assets. The Southwest Valley property sits less than one mile west of the new Loop 202 expansion and within five-mile proximity to Interstate 10 and Interstate 17, delivering 13-minute access to Sky Harbor International Airport. The Airport Area facility captures premium infill positioning just 0.6 miles from Interstate 17 and 2.3 miles from Sky Harbor, which ranks as the nation's ninth-busiest passenger airport by traffic volume. These logistics-centric locations support supply chain efficiency and broad tenant appeal.
JLL Capital Markets' Senior Managing Director Ben Geelan and Senior Director Greer Oliver represented the seller. Oliver commented that "institutional capital continues to recognize the compelling fundamentals of Phoenix's infill industrial submarkets," underscoring ongoing investor appetite for logistics properties in well-located, supply-chain-proximate submarkets. The transaction reflects sustained institutional interest in Phoenix's industrial market amid broader real estate capital repositioning.
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