Intersection Equities Sells Key West Business Park in Gilbert, AZ for $19.05

Sale Demonstrates Strong Value-Add Strategy and Robust Market Fundamentals

Intersection Equities is pleased to announce the successful off-market sale of the Key West Business Park in Gilbert, Arizona. The property was acquired by CSIM Key West Owner LLC, a Delaware limited liability company, for a total price of $19,050,000, or $199 per square foot. The transaction includes 95,945 square feet of industrial space located at 700, 720, and 734 N Golden Key Street, Gilbert, AZ 85233-3803.

Key West Business Park was originally acquired by Intersection Equities in May 2022, which recognized the asset’s strategic location, strong submarket fundamentals, and significant value-add potential. In alignment with their investment strategy, Intersection Equities invested in a series of capital improvements that included addressing deferred maintenance, enhancing curb appeal with new paint, landscaping upgrades, and parking lot repairs.

“We saw the potential to transform Key West Business Park through a proactive leasing program led by capital expenditures that enhanced both the appearance and operations of the property,” said Rocco Cortese, CEO and Co-founder of Intersection. “This sale generated strong value-add returns for our investors and further validated our thesis around small-bay industrial properties.”

Following these improvements, over 93% of the rentable square footage was re-tenanted, and the property was sold with a Weighted Average Lease Term (WALT) of two years, providing the new buyer with the opportunity to further increase rents. The investment’s overall success was underscored by a significant increase in rental rates: the weighted average rental rate at acquisition was $0.50 per square foot, and at sale, it had risen to $1.06 NNN per square foot.

“We were able to push rents well beyond what we initially underwrote, thanks to the strong location and tight market conditions,” added Anton Myskiw, Senior Associate at Intersection. “Despite the challenges in the capital markets, we were able to meet our financial projections and deliver strong returns.”

The property was sold to CSIM Key West Owner LLC, who participated in the sale process when the property was originally marketed in 2023.

The successful transaction reflects the continued demand for well-located industrial assets in the Gilbert area and highlights the strategic value of industrial real estate in high-growth markets. Intersection Equities plans to continue to pursue similar opportunities in key U.S. markets as part of its ongoing investment strategy.