INDUS Realty Trust has acquired a fully leased, 418,000-square-foot Class A warehouse and distribution facility in the Phoenix market, expanding its local industrial portfolio to more than 1.5 million square feet less than two years after entering the region.
The property is located in the Tolleson submarket and provides direct connectivity to Interstate 10, a major freight corridor linking Phoenix with Southern California. The modern cross-dock facility includes extensive loading capacity, trailer parking and 180-foot-deep secured and gated truck courts, features designed to support large-scale logistics and distribution operations.
Financial terms of the acquisition were not disclosed.
INDUS is investing in the property based on both its physical characteristics and the potential for future rental growth. The company said it acquired the building at a price well below replacement cost, reflecting existing rents that are below current market levels.
That lease profile creates potential mark-to-market upside when the current lease expires. INDUS also pointed to leasing momentum for comparable large industrial buildings in Phoenix as supporting its expectation for future rent growth.
“This well-located, high-quality cross-dock facility was purchased well below replacement cost, thanks to its below-market rents and strong mark-to-market upside,” said Andre Ciani, director of acquisitions for the Phoenix region at INDUS Realty Trust. “With solid leasing momentum in the market for buildings of this size and larger, we are confident in capturing significant rent growth at lease expiration.”
The acquisition further increases INDUS’ exposure to Phoenix, where the company has assembled more than 1.5 million square feet of industrial real estate since making its first acquisition less than two years ago. The pace of investment reflects the company’s view of the metro area as both an important distribution market and an expanding center for advanced manufacturing and data center investment.
Tolleson provides a particularly strategic location within that market because of its infill characteristics and access to transportation infrastructure. Direct I-10 connectivity gives warehouse users access to the broader Phoenix metropolitan area while supporting freight movement between Arizona and Southern California.
INDUS also views supply constraints in the Tolleson submarket as an important component of the property’s long-term investment thesis. Infill industrial locations can be difficult to replicate as available development sites become scarcer, potentially increasing the value of existing modern distribution facilities with strong highway access.
“Phoenix is a critical distribution location and a major advanced manufacturing and data center hub benefitting from significant investment from multinational corporations, a growing population, and strong long-term demand drivers,” INDUS President and CEO Michael Gamzon said.
Gamzon said the Tolleson acquisition strengthens the company’s portfolio with a high-quality industrial asset in a supply-constrained submarket. He also pointed to the capital available from INDUS investors Centerbridge Partners, GIC and the Abu Dhabi Investment Authority as supporting continued acquisitions and development.
The transaction illustrates INDUS’ broader strategy of deploying institutional capital into modern logistics facilities in markets where population growth, corporate investment and supply-chain activity support long-term industrial demand. The company acquires existing properties while also developing new industrial assets, providing multiple avenues for expanding its portfolio.
Phoenix offers exposure to several of those demand drivers simultaneously. Beyond its traditional role as a Southwest distribution market, the region has attracted investment in advanced manufacturing and data infrastructure, potentially broadening the tenant base for industrial properties beyond conventional warehouse and logistics users.
The acquired building’s cross-dock configuration also positions it for large-scale distribution operations. Cross-dock facilities allow goods to move efficiently between inbound and outbound transportation, while substantial truck courts, trailer storage and loading capacity can be important requirements for larger logistics tenants.
Cushman & Wakefield’s National Industrial Advisory Group – Mountain West arranged the transaction. The team included Will Strong, Jack Stamets, Molly Miller, Michael Matchett and Madeline Warren.
As of July 2026, INDUS owned or held majority interests in properties totaling 15.7 million square feet. The company is owned by affiliates of Centerbridge Partners and GIC, with a wholly owned subsidiary of ADIA investing alongside Centerbridge.
The Tolleson acquisition adds another sizable property to that platform while reinforcing Phoenix as a growth market for INDUS. With a fully leased building acquired below replacement cost and potential rental upside at lease expiration, the investment combines current occupancy with a longer-term opportunity to capture higher rents in a strategically located industrial submarket.
