JLL Arranges $58.72M Mesa West Capital Refinancing for Panattoni's Glendale Industrial Portfolio

JLL Capital Markets arranged a $58.72 million refinancing for Northern Parkway Logistics Center, a 445,187-square-foot Class A industrial portfolio in Glendale, Arizona, the firm announced Nov. 10. Mesa West Capital provided the three-year, floating-rate loan to the borrower, Panattoni Development Company.

The portfolio is located at 12815 W. Northern Ave. and 12795 W. Northern Ave. and was 57.9% leased at closing. JLL said the financing supports the continued lease-up and stabilization of the newly delivered development in Phoenix's West Valley.

Financing Terms and Deal Structure

JLL worked on behalf of Panattoni to secure the loan through Mesa West Capital. The loan carries a three-year term and a floating interest rate. The $58.72 million amount equates to roughly $131.90 per square foot of building area.

With the property 57.9% leased at closing, approximately 187,000 square feet remained available, assuming the leasing percentage applies to the full 445,187-square-foot portfolio. The three-year floating-rate structure gives the borrower time to complete leasing before pursuing longer-term financing.

The JLL Capital Markets team was led by Senior Director Jason Carlos, along with Associate Frank Choumas, Analyst Ross Jorgensen and Analyst Andrew Mings.

"Northern Parkway Logistics Center's strength starts with the sponsorship. Panattoni's platform and the quality of the project gave lenders real confidence in the lease-up plan," Carlos said. "Lender capital remains abundant despite recent market activity, and we've closed a number of lease-up bridge financings where leasing momentum is on the sponsor's side. Mesa West deserves credit for an excellent closing in a slightly turbulent back-leverage market."

Property Details: Northern Parkway Logistics Center

Completed in 2025, Northern Parkway Logistics Center comprises three industrial buildings on approximately 30 acres within Northern Parkway Logistics Hub, a master-planned industrial development in Phoenix's West Valley. The buildings are designed for single-tenant and multi-tenant users across logistics, distribution, manufacturing and other industrial uses.

Property features include:

• 32- to 36-foot clear heights
• 73 dock-high doors and eight grade-level doors
• Power capacity ranging from 3,000 to 6,000 amps
• ESFR sprinkler systems
• 62 trailer parking stalls and 451 vehicle parking spaces

The property sits between Loop 101 and Loop 303, providing access to regional transportation corridors and connectivity across Metro Phoenix and to major Western U.S. markets. It is near Luke Air Force Base and a concentration of logistics, manufacturing, aerospace, advanced technology and defense-related employers.

Phoenix Industrial Market Context

Phoenix industrial fundamentals improved through the third quarter of 2026, though reported vacancy varied by research provider because of differences in market boundaries and methodology.

Colliers reported 8.4% vacancy, down 143 basis points year over year, with 5.4 million square feet of quarterly absorption and 14.6 million square feet of year-to-date absorption against 6.2 million square feet delivered. CBRE reported 9.7% vacancy, down 150 basis points year over year, with average asking rents up 9% from a year earlier. Cushman & Wakefield reported 10.3% vacancy, a 300-basis-point annual decline, with 20.5 million square feet of 12-month absorption and 9 million square feet delivered over the prior 12 months. Kidder Mathews reported 11.5% vacancy, with 14 million square feet under construction and average direct asking rents of $1.18 per square foot per month NNN.

West Valley big-box space remains comparatively cost-competitive. Colliers reported third-quarter asking rents of $0.97 per square foot in the Northwest cluster and $0.95 per square foot in the Southwest cluster, compared with a $1.14 per square foot Phoenix average.

Competitive Supply Near Glendale

Additional large-scale industrial supply is planned near the property. A separate 1,184,591-square-foot project also named Northern Parkway Logistics Center sits at Reems Road and Northern Parkway, owned by Merit Partners and scheduled for fourth-quarter 2026 delivery. That development is distinct from the 445,187-square-foot Panattoni portfolio. VT303 North, a 1,146,518-square-foot Glendale project at 7842 N. Reems Road, is also scheduled for fourth-quarter 2026 delivery.

Company Backgrounds

JLL said its Capital Markets group has more than 3,000 specialists worldwide with offices in nearly 50 countries. JLL reported annual revenue of $26.1 billion, operations in more than 80 countries and a workforce of approximately 112,000 as of Sept. 30, 2026.

Panattoni Development Company, founded in 1986, has developed more than 650 million square feet of space since inception, including more than 244 million square feet of build-to-suit projects. Mesa West Capital, founded in 2004, describes itself as a non-recourse balance sheet lender and has originated more than 450 loans totaling over $29 billion of commitments.

Outlook

The transaction shows lenders funding newly delivered industrial assets with lease-up remaining, consistent with Carlos's comments on lease-up bridge financings. The loan's floating rate leaves the borrower exposed to interest-rate movements, and leasing pace within a market that carries substantial available inventory will shape the property's path to stabilization.

Sources

• JLL: https://www.jll.com/en-us/newsroom/financing-arranged-for-northern-parkway-logistics-center