Deer Valley: Premier Industrial Investment Opportunity in Phoenix, AZ

Deer Valley represents a prime industrial investment opportunity located in one of the fastest-growing and strategically positioned submarkets of Phoenix. The property benefits from proximity to major manufacturing clusters, robust economic growth, and exceptional connectivity, making it an ideal location for modern industrial operations. Below are the key highlights that make this asset an exceptional addition to your investment portfolio.

Property Overview

• Address: 2837 W. Louise Dr, Phoenix, AZ 85027
• Asset Type: Industrial Warehouse
• Size: 42,168 SF
• Lot Size: 3.64 acres
• Zoning: X (Commercial/Industrial)
• Market: Phoenix Industrial Market (Deer Valley/Pinnacle Park Submarket)

Key Features

• Location: The property is located in the Deer Valley industrial corridor, with immediate access to I-17 and Loop 101, ensuring seamless connectivity across Phoenix metro and regional freeways.
• Proximity to TSMC: The property is located near TSMC’s $65B multi-fab campus in North Phoenix, one of the largest foreign direct investments (FDI) in U.S. history, fueling demand for industrial space in the region.
• Modern Infrastructure: A newly built, first-generation asset (2024), ready for tenant improvements with minimal upfront capital required, ideal for companies seeking state-of-the-art industrial space.
• Strong Market Fundamentals: The Phoenix industrial market is experiencing a tightening supply, with vacancy rates declining and rents rising, signaling strong demand for high-quality industrial assets.
• Strategic Location: The warehouse benefits from proximity to major transportation hubs, including Sky Harbor International Airport and Deer Valley Airport, enhancing logistics and air-freight connectivity.

Investment Highlights

• Equity Raise: $3,000,000 of equity is being raised to capitalize acquisition and near-term leasing/tenant improvements, with prudent senior financing anticipated.
• Targeted Returns: Investors are projected to achieve a ~22% net IRR and a ~2.0x equity multiple over the hold period, assuming base-case lease-up and exit execution.
• Compelling Entry Cap Rate: The projected entry cap rate is 10%, providing a meaningful margin of safety versus stabilized, infill industrial pricing in the corridor.
• Exit Cap Rate: The business plan underwrites a 5% exit cap rate at a five-year hold, creating cap-rate compression upside in addition to rent growth and lease-up potential.
• Monthly Distributions: Monthly distributions will commence following lease commencement, with distribution levels scaling by investment amount and rising as the building stabilizes.

Strategic Location with Key Demand Drivers

• Proximity to TSMC’s Multi-Fab Campus: The $65B investment in North Phoenix by TSMC is expected to generate significant demand for industrial space, creating thousands of jobs and reinforcing the long-term need for facilities like this one.
• Nearby Advanced Manufacturing Facilities: Amkor Technology’s $2B chip packaging and test facility is being developed nearby, further strengthening the semiconductor supply chain and reinforcing demand for warehouse space in the area.
• Transportation Infrastructure: The property’s location offers exceptional access to major highways (I-17, Loop 101), reducing transportation costs and improving delivery efficiency for tenants. Additionally, proximity to Deer Valley Airport provides critical air-freight capabilities.

Investment Strategy & Value Creation

• Flexible Layout & Value-Add Potential: The warehouse offers flexibility for various industrial uses, including manufacturing, assembly, and distribution, improving tenant capture and renewal probabilities.
• Tenant Diversification: A diverse mix of tenants is expected, reducing the risk of revenue loss and supporting long-term stability and cash flow.
• Refinancing Opportunities: Post-stabilization, the asset is designed to support refinancing, enabling a partial or full return of investor capital prior to sale.
• Strong Demand Drivers: Phoenix’s rapidly growing population, economic expansion, and strong industrial demand from the semiconductor and manufacturing sectors ensure ongoing demand for space at this location.

Risk Management & Exit Strategies

• De-risked Investment: New construction, modern building systems, and minimal deferred maintenance reduce risks related to capex and business interruption.
• Exit Strategy: Multiple exit pathways are available, including (1) sale to income buyers once stabilized, (2) recapitalization at refinance, or (3) hold for yield with periodic cash-out opportunities.

Sponsor & Management Team

• Sponsor: Manish Pushye, with over 25 years of experience in commercial real estate, specializing in acquisitions, property management, and business operations.
• Key Management: Archana Saini (Operations & Strategic Direction), Brad Blazar (Capital Raising Expert), Michael Fugler (Legal Advisor), Eric Ortiz (Investor Relations)

Market Fundamentals & Future Outlook

• Population & Economic Growth: Maricopa County, home to Phoenix, ranks among the fastest-growing counties in the U.S. with strong population growth expected, fueling demand for industrial and logistics spaces.
• Supply & Demand Dynamics: As new construction slows and demand from the semiconductor and tech sectors persists, well-located, modern industrial properties like this one are positioned for above-market rent growth and sustained demand.

Risk Factors & Disclaimers

• No Guarantees: Financial targets are based on projections and past performance. The sponsors make no representations or warranties regarding the likelihood of achieving these targets.
• Accredited Investors Only: Offers are available only to accredited investors as defined by the SEC.
• Environmental and ADA Compliance: The appraisal assumes no environmental hazards or ADA non-compliance, but such issues could impact the property’s value.