Deer Valley Industrial Park

Kool Products DEF Facility presents a scalable manufacturing opportunity driven by regulatory demand. Located in a prime Phoenix industrial hub, this project focuses on producing Diesel Exhaust Fluid (DEF)—a non-discretionary consumable required by all modern diesel engines. With a strong freight cost advantage from local production, the facility is well-positioned to secure regional fleet and distribution contracts.

Property Overview

• Address: 21601 N 9th Ave, Phoenix, AZ
• Asset Type: Industrial Manufacturing Facility
• Building Size: 16,068 SF
• Lot Size: 0.86 Acres
• Warehouse Space: 13,068 SF (Air-Conditioned)
• Office Space: 3,000 SF (Two Levels)
• Clear Height: 20 Feet
• Power: 800 Amps / 120-208V
• Loading: Three (3) Overhead Doors
• Outdoor Storage: ~10,000 SF Fenced Yard

Key Features of The Property

• Industrial-Ready Facility: Designed for chemical processing and manufacturing operations.
• Efficient Layout: Integrated warehouse, office, and outdoor storage for seamless operations.
• High Power Capacity: Supports heavy industrial equipment and continuous production.
• Secure Storage: Fenced yard for bulk material handling and logistics.

Strategic Location Advantages

• Logistics Hub: Located in Deer Valley Airpark with access to I-17, I-10, and I-40.
• Regional Distribution: Ideal central point for Arizona, California, Nevada, and New Mexico.
• Zoning Benefit: A-1 Heavy Industrial zoning reduces entitlement and compliance risks.

Market Demand Drivers

• Regulatory Requirement: DEF is mandatory for diesel engines to meet EPA emissions standards.
• Recurring Demand: Diesel fleets require continuous replenishment of DEF.
• Expanding Fleet Usage: Growth in logistics, construction, and municipal sectors.
• Supply Gap: High transportation costs create demand for regional production facilities.

Investment Highlights

• Turnkey Production Setup: Includes 750 L/Hr processor, water treatment system, storage tanks, and automated filling lines.
• Strong Revenue Potential: Projected $3.4M+ annual gross revenue from wholesale operations.
• High Margins: Expected gross margins between 20% – 35%.
• Risk-Mitigated Budget: Includes 20% contingency (~$423,695) and full installation.

Financial Overview

• Total Project Cost: ~$2.55M
• Annual Production Capacity: ~1,425,600 Gallons (16-hour operation)
• Target Wholesale Price: $2.40 per Gallon
• Estimated Gross Profit: ~$1,000,000 annually (at ~25% margin)
• Material Quality: 316 Stainless Steel interconnections for durability and purity

Development Strategy Options

• Wholesale Distribution: Secure contracts with regional fleets and distributors.
• Retail Packaging: Utilize 2.5-gallon filling systems to access higher-margin retail markets.
• Scalability: Expand capacity through additional shifts (24-hour operation) or increased storage infrastructure.

Conclusion

The Kool Products DEF Facility represents a high-barrier industrial investment opportunity. With strong regulatory demand, scalable production capabilities, and strategic location advantages, the project is positioned to deliver recurring B2B revenue, high margins, and rapid capital recovery.