Meritex Acquires $7.175M Office Real Estate Site in Phoenix for Industrial Redevelopment

The Meritex Company has acquired North Mountain Corporate Center, a vacant office building at 10400 N. 25th Avenue in Phoenix, for $7.175 million, with plans to convert the site into industrial real estate. The transaction closed February 13, 2026, with Colliers representing seller Macfarlan Capital Partners in the deal.

The Minneapolis-based buyer is targeting the property's infill location, existing industrial zoning, and full vacancy status to execute a real estate development strategy. The acquisition price of approximately $65.62 per square foot reflects the property's value as a redevelopment opportunity.

Office Real Estate Conversion Details

The two-story office building encompasses 109,332 rentable square feet on a 7.63-acre parcel with 608 parking spaces. Originally constructed in 1996 and renovated in 2016, the property was delivered 100% vacant.

The site's existing A-1 zoning for industrial use eliminates a significant barrier to redevelopment. The property is located less than a quarter-mile from the Mountain View/25th Avenue light rail stop, with immediate access to Interstate 17.

Commercial Real Estate Transaction Team

Colliers' Brian Ackerman, Todd Noel, Kyle Campbell, and Matt Baniszewski represented Macfarlan Capital Partners in the real estate acquisition. Following the planned industrial redevelopment, Newmark's Keri Scott and Alex Kas-Marogi will handle leasing for the repositioned property.

The Dallas-based seller, Macfarlan Capital Partners, opted to divest the asset. No cap rate or commercial real estate financing terms were disclosed for the transaction.

Industrial Real Estate Market Context

The conversion from office to industrial use reflects broader market dynamics in the Phoenix commercial real estate sector. Northwest Phoenix has seen increased investment activity as developers seek infill sites with existing industrial zoning near major transportation corridors.

The property's proximity to the Metrocenter redevelopment project, located approximately one mile away, positions the site within an area of ongoing development activity. The 608-space parking ratio and the property's 426 pre-wired workstations on the second floor represent existing infrastructure that may be adapted for industrial and flex space configurations.