Chandler Small-Bay Industrial
235 S 56th St, Chandler, AZ 85226
Investment Overview
Chandler Small-Bay Industrial is a high-conviction commercial industrial repositioning project located in the infill Southeast Valley corridor of Chandler, Arizona, sponsored by Hanson Capital.
Hanson Capital acquired the vacant ~105,000-square-foot single-tenant distribution facility below replacement cost utilizing an conservative, debt-free acquisition structure to convert the building into approximately 10 modern small-bay industrial suites—capturing robust tenant demand in an acutely supply-constrained size tier.
Property & Submarket Highlights
- Small-Bay Supply Imbalance: While big-box logistics supply expanded across Greater Phoenix, infill small-bay spaces (~8,000–12,000 SF) remain structurally undersupplied with high occupancy and rental pricing power.
- All-Cash Downside Protection: Acquiring without senior debt eliminates interest rate volatility and loan covenant pressure during demising improvements and lease-up.
- Prime Southeast Valley Corridor: Immediate freeway access serving local service businesses, specialized contractors, semiconductor supply-chain vendors, and last-mile logistics users.
- Short Duration Horizon: Targeted 2-year value-add execution window with an 8% preferred return and 20% projected IRR.