Captiva Partners, a well-established real estate investment and operating firm, is excited to announce its entry into the Phoenix market with the off-market acquisition of a 40,075-square-foot multi-tenant small-bay industrial property at 2209-2211 W 1st St in Tempe, Arizona. This acquisition marks a strategic expansion for Captiva, which has primarily focused on industrial and flex properties along the West Coast.
The property will be rebranded as First Street Commerce Center, reflecting Captiva’s vision for transforming the space into a highly functional and modern location for businesses seeking flexible industrial solutions. The firm plans to implement a comprehensive value-add strategy aimed at increasing the property’s appeal to current and potential tenants. Enhancements to the property will include the addition of new signage, refreshed landscaping, exterior painting, and upgraded interior spaces, ensuring the site meets the evolving needs of today’s industrial tenants.
“We see tremendous potential in First Street Commerce Center,” said Brian Abers, Managing Partner at Captiva Partners. “This acquisition perfectly aligns with our investment strategy and represents an excellent opportunity to apply our expertise in repositioning multi-tenant industrial properties. Our goal is to enhance the property’s appeal and functionality, making it a top choice for tenants in Tempe. With the Phoenix market’s continued growth and strong demand for industrial spaces, this is an exciting milestone for Captiva Partners.”
The acquisition of First Street Commerce Center is a strategic move into one of the most robust real estate markets in the United States. Tempe, a key city within the Phoenix metropolitan area, has seen impressive growth due to its central location, excellent connectivity, and favorable business environment. As more businesses continue to seek industrial spaces in the area, Captiva is well-positioned to capitalize on the demand for flexible and high-quality industrial properties.
Cory Breinholt of Commercial Properties, Inc., who represented both Captiva Partners and the seller in the transaction, shared his thoughts on the deal: “Captiva’s ability to identify the value in this property and act quickly highlights their strength in recognizing investment opportunities. Their plans for the First Street Commerce Center will greatly benefit the Tempe area by providing high-quality, upgraded spaces for a variety of tenants.”
The Phoenix market is proving to be incredibly resilient, driven by significant population growth, diverse economic activity, and increasing demand for industrial space. Tempe, specifically, offers a dynamic business environment with strong demographics and excellent connectivity to key transportation routes, making it a prime location for businesses to establish and expand operations. Additionally, the region’s high barriers to entry—due to limited available land and increasing demand for real estate—make it a strategic market for Captiva’s long-term investment plans.
Tempe’s attractiveness to businesses spans multiple industries, including e-commerce, logistics, and advanced manufacturing, all of which are driving demand for small-bay industrial spaces. These industries, alongside the city’s educational institutions and research facilities, contribute to a thriving and growing business ecosystem. The addition of First Street Commerce Center to Captiva’s portfolio enhances the firm’s ability to serve the diverse needs of tenants in the region, offering them flexible spaces that support growth and business agility.
As part of its value-add approach, Captiva Partners is committed to ensuring that First Street Commerce Center remains a highly functional and attractive property for years to come. The planned upgrades and renovations will not only improve the aesthetic appeal of the property but also enhance the tenant experience. By creating spaces that meet the evolving needs of businesses, Captiva aims to build strong, long-lasting relationships with tenants while maximizing the value of the asset for investors.
“We are excited to be part of the continued growth and development of the Phoenix market,” added Abers. “Tempe’s strong fundamentals and the ongoing demand for industrial space make this acquisition a great fit for our firm’s strategy. We look forward to executing our vision for the First Street Commerce Center and continuing to expand Captiva’s footprint in high-growth markets across the West Coast and beyond.”
Captiva Partners is a Southern California-based real estate investment and operating firm specializing in industrial and flex properties.
The firm focuses on value-add investments, acquiring underperforming assets and implementing strategic improvements to enhance their value. With a track record of successful renovations and management of industrial properties, Captiva Partners is committed to providing high-quality spaces for tenants while delivering strong returns for its investors.
In conclusion, the acquisition of First Street Commerce Center marks an important step for Captiva Partners as it expands its presence in the Phoenix market. The property’s prime location in Tempe, coupled with Captiva’s planned improvements and commitment to quality, makes it a highly attractive option for businesses in need of flexible, modern industrial space. With a strong investment strategy and a proven ability to execute, Captiva Partners is well-positioned to capitalize on the continued growth of the Phoenix market and deliver lasting value to tenants and investors alike.
