MDH Partners today announces that Jacuzzi Group™ has signed a 143,520-square-foot lease for Building A at Kentwood 303, a distribution center in Glendale, Arizona. MDH Partners acquired the two-building, 271,400-square-foot, Class-A industrial park in April 2022. Curtis Ellmore, Managing Director with Jones Lang LaSalle Brokerage (“JLL”), partnered with Hagen Hyatt at the local JLL office in Phoenix to facilitate the deal.
“Consumers are increasingly prioritizing health and investing in their well-being,” said Drew Crawford, Vice President of Asset Management for MDH Partners. “The wellness benefits of Jacuzzi® products are endless, and it’s no surprise the global retailer is expanding its operations to meet this emergent demand. Kentwood 303 serves as an ideal facility for a user like Jacuzzi Group, due to the facility’s heavy power, its proximity to key distribution points and a highly desirable workforce.”
Jacuzzi Group™ is a global manufacturer and distributor of branded baths, hot tubs, swim spas and saunas. As the owner of the iconic and globally famous Jacuzzi® trademark, the company offers the most recognized brand in the world for spa and hydrotherapy bathing. Jacuzzi® products are manufactured in five countries and enjoyed in more than 100 countries worldwide. The new Glendale facility will double subsidiary Jacuzzi Bath Remodel’s manufacturing and distribution capacities using state-of-the-art robotics and best practices for order fulfillment. It will serve Jacuzzi Bath Remodel Retail stores throughout the Western U.S. which will drive down transportation costs for its customers.
“We are eager to continue building our brand in the Valley of the Sun,” said Joseph Davis, Jacuzzi Group’s President of North America Bath. “For over 60 years, Jacuzzi has delivered quality bath products to our customers, and we are excited to continue that tradition in our new Arizona Operations Center in the City of Glendale.”
Kentwood 303 is a two-building property in the city of Glendale. Jacuzzi® is located in Building A, which is 143,520 square feet and located at 6075 N Cotton Lane. Building B is 128,576 square feet, fully leased to two tenants, and located at 6051 N Cotton Lane. Ideally positioned within the Phoenix industrial market, Kentwood 303 is located less than one mile west of an access point to Loop 303 and only four miles north of I-10. The property is situated 30 minutes west of the Phoenix Sky Harbor International Airport, creating a distribution point for the Southwestern United States.
According to JLL, leasing activity in the Phoenix Metropolitan Area remained strong in the third quarter of 2022 with nearly three million square feet of space leased. Current vacancy rates are about six percent and continue to drop despite a record-shattering year of new supply in the Phoenix industrial market. Continued rent growth and vacancy rate compression are expected in 2023.
MDH Partners’ Arizona footprint comprises more than 1.3 million square feet. In addition to Kentwood 303, the firm expects to complete its self-developed project known as Gateway 303 in Q2 2023. Gateway 303 is a two-building fully leased industrial project totaling 600,000 square feet located approximately two miles south from Kentwood 303. MDH Partners appreciates the great working relationships forged with the business-friendly municipalities of Goodyear, Glendale, Litchfield Park, and Maricopa County during the development and build-outs for the newly signed tenants set to take occupancy of MDH properties located along the 303 corridor. MDH Partners has remained very active in 2022, acquiring nearly five million square feet of industrial assets throughout the U.S. since January. The firm recently expanded its portfolio into new markets including California, Minnesota, Maryland, Indiana, Illinois and Pennsylvania. The firm currently owns over 85 assets across 20 states.
About MDH Partners
MDH Partners is an Atlanta-based real estate investment company managing its discretionary funds targeting industrial real estate across the United States on behalf of its institutional investors. Founded in 2005 as the successor to a fifty-year-old local real estate development company, MDH Partners has led and/or participated in over $6 billion (90 million square feet) of acquisitions, developments, and asset management as an advisor and investor. For more information, visit www.mdhpartners.com.
