Phoenix CRE Roundup: $141M Scottsdale Multifamily Construction Loan, $135M Industrial Sale Lead May Activity

Market Commentary Office Multifamily Industrial Warehouse & Distribution Land Data Center Affordable PhoenixMetro PhoenixArizona Mesa ScottsdaleSurpriseGila BendPinal CountyEloy

June 11, 2026•5 min read

PHOENIX — Metro Phoenix commercial real estate recorded a series of major transactions across multifamily, industrial, office, warehouse, and retail real estate sectors in May 2026, according to a market brief published June 4 by Colliers. The five largest deals of the month spanned land, industrial parks, luxury apartments, and a landmark office campus sale.

Multifamily Real Estate: $141M Scottsdale Construction Loan, Mesa Luxury Sale

Developer The Hampton Group closed a $141 million construction financing package for IKONIC Scottsdale, a 14-story luxury rental tower planned at 16640 N. Scottsdale Rd. near The Promenade and Kierland Commons. The financing includes a senior mortgage and a mezzanine tranche and covers 245 units averaging roughly 1,062 square feet across one-, two-, and three-bedroom floor plans. Completion is targeted for 2028, according to a GlobeNewswire announcement. The per-unit financing works out to approximately $575,510.

In a separate multifamily real estate transaction, the 339-unit Longbow Luxury Apartments at 2950 N. Recker Rd. in Mesa sold for $95.25 million, or approximately $280,973 per unit. DR Horton was the seller and Millburn and Company was the buyer. The property is situated adjacent to the Longbow Golf Club within Mesa's Falcon Field aerospace and advanced-manufacturing employment corridor.

Colliers' Q1 2026 United States Multifamily report described the Phoenix market as entering a "rebalancing" phase, with the metro absorbing its supply pipeline better than many models had projected. Phoenix's multifamily inventory stood at 461,783 units as of Q1, with occupancy at 94.4 percent — up 0.4 percentage points year over year — while average effective rent declined 4.8 percent year over year to $1,479 per month.

Industrial and Warehouse Real Estate: Hub @ 202, West Summit, Sky Harbor Trades

A joint venture led by Machine Investment Group, with Miramar Capital and Axonic Capital, acquired The Hub @ 202, a 10-building, 1.27 million-square-foot industrial park in Mesa's Southeast Valley, from Affinius Capital for $135 million, or approximately $106 per square foot. The buyers plan to invest further to build out move-in-ready suites, citing demand driven by nearby projects including TSMC's expansion and LG Energy Solution's Queen Creek battery complex.

In the warehouse real estate segment, consumer-goods manufacturer US Merchants paid $63,887,560 — approximately $140.73 per square foot — for Building One at West Summit at Surprise at 13401 W. Sweetwater Ave. The seller and developer was Mohr Capital. The 453,960-square-foot, fully air-conditioned facility features 36-foot clear heights, rail-spur potential along the BNSF Railroad, and a Foreign Trade Zone designation.

Belkorp acquired a 129,528-square-foot industrial property at 3809 E. Watkins St. within the Sky Harbor International Airport logistics corridor for $44.15 million, or approximately $340.85 per square foot. Oxford Properties Group was the seller.

Office Real Estate: Riverpoint Campus Leads Phoenix's Largest Office Sale Since 2022

LXP Industrial Trust purchased the University of Phoenix Riverpoint campus, a 628,192-square-foot, multi-building Class A office complex on S. Riverpoint Pkwy. adjacent to Interstate 10, for $103 million — approximately $163.96 per square foot. The 37-acre infill site is leased to the University of Phoenix. According to Colliers, the transaction ranked as the largest Phoenix office sale by price since 2022.

Elsewhere in office real estate, George Oliver's experiential office redevelopment Bond at 3200 E. Camelback Rd. reached 98 percent committed following more than 137,000 square feet of new leasing. Banner Health expanded its headquarters lease by 12,000 square feet to a total of 80,000 square feet, relocating from Phoenix Plaza in Midtown, while RSM US LLP took approximately 25,000 square feet, relocating from within the Camelback Corridor. More than 33,000 square feet of additional mid-sized leases were also executed.

SkySong, the ASU Scottsdale Innovation Center, recorded more than 28,000 square feet of new leases and expansions as it marked its 20th anniversary. Tenants included Flare, which signed a 13,487-square-foot extension; NexGen Financial, which leased 5,351 square feet of new speculative space in SkySong 2; and New American Funding, which took 4,699 square feet. Colliers represented NexGen Financial in its transaction.

Albuquerque SNF LLC acquired Fairmount Place, an 87,030-square-foot, four-story multi-tenant office building at 4001 N. 3rd St. in Midtown Phoenix, from First & Center LLC for $11.5 million, or approximately $132 per square foot. The property was approximately 92 percent leased at closing, with 31 suites configured as move-in-ready spec suites.

Retail Real Estate: Whole Foods-Anchored Center, Downtown STK Opening

Developer SimonCRE acquired approximately 10 acres in Surprise for $3,783,200 to develop Prasada East, a 98,000-square-foot open-air retail center. The project is anchored by a 35,100-square-foot Whole Foods Market, with additional confirmed tenants including Barnes and Noble, Paddy O' Furniture, Flower Child, and Hammer and Nails. Groundbreaking is planned for spring 2026.

In downtown Phoenix, The ONE Group Hospitality opened STK Steakhouse at 201 E. Washington St., Suite 114, adjacent to the downtown arena and convention district. The venue seats up to 500 guests and features a central bar, private dining spaces, and an indoor-outdoor design.

Hospitality Real Estate: Atari Hotel Advances Toward Construction

No Metro Phoenix hotel or resort transaction meeting Colliers' reporting threshold closed during the week covered by the brief. The downtown Atari Hotel, a 91-room gaming-themed concept from developer Intersection Development at 840 N. Central Ave., continues to advance toward a 2026 construction start. The project is projected to cost approximately $124 million, or roughly $1.36 million per room, a figure that reflects an integrated 60,000-square-foot immersive entertainment, esports, and event complex.

Land and Mixed-Use Activity

Arizona Public Service acquired a 1,260.27-acre agricultural tract in Gila Bend for $38,943,172 — approximately $30,901 per acre — from sellers Cheryl Banning and Robert L. Van Hofwegen. The parcel sits along the Interstate 8 and State Route 85 corridor.

Vermaland's La Osa Energy Center near Eloy, once positioned as the largest proposed data center in Arizona, will be significantly reduced in scope after resident opposition centered on water and power concerns. At a May 27 Pinal County Board of Supervisors hearing, the developer requested a continuance to submit smaller plans, cutting the building count from 59 to 11 data centers — approximately an 80 percent reduction. The rezoning decision was deferred to August 26, 2026.

The Goldwater Institute filed suit against the City of Phoenix in Maricopa County Superior Court to block the sale of a city-owned parcel at 1016 N. 2nd Street to developer Pennrose Properties. The complaint argues that selling land appraised at approximately $4.8 million for roughly $1.5 million violates the Gift Clause of the Arizona Constitution. Pennrose's proposal includes approximately 60 affordable housing units and a Bezos Academy early childhood education program.

Diversified Partners closed on a roughly 100,000-square-foot waterfront property in McCormick Ranch, east of Scottsdale Road off McCormick Parkway, for a reported approximately $25.5 million to develop The Lakefront at Scottsdale. The two-phase redevelopment is planned to include restaurants, boutique and experiential retail, wellness tenants, and Class A office space. Construction is expected to begin in the third quarter of 2026, with a second phase anticipated to begin in early 2027.

Market Outlook

According to Colliers' June 4 brief, capital activity across Metro Phoenix in May reflected continued buyer interest in income-producing and well-located assets, with premiums observed for stabilized cash flow and redevelopment potential. The multifamily sector showed signs of stabilization as occupancy edged higher even as rents declined, while industrial and warehouse real estate trades remained active across the Southeast Valley and West Valley submarkets. Office leasing activity concentrated in amenitized, Class A environments along the Camelback Corridor and at innovation-focused campuses.

Sources

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