IndustrialClosedacquisition

Cotton 303 Logistics Center

6801 North Cotton Lane, Glendale, AZ·Mar 30, 2026, 9:10 PM

Deal Size

$104.0M

Cap Rate

Est. 5.10%

$/SF

$114

Size

915K SF

Occupancy

100%

Market SignalBullish (strong/10)

The Cotton 303 Logistics Center, acquired for $104M at a 5.10% cap rate, represents a strong investment due to its prime location in Glendale, AZ, a market characterized by robust demand for industrial space. The property is fully leased to Cubework.com, a leading provider of flexible industrial solutions, which enhances its stability and income reliability. The cap rate is competitive compared to recent transactions in the Phoenix market, indicating a favorable risk-return profile for institutional investors.

Buyer Strategy

Prologis, a leading player in the logistics sector, is pursuing a core investment strategy with this acquisition, aiming to enhance its portfolio of high-quality industrial assets. This acquisition aligns with their focus on strategic locations that support e-commerce and logistics operations.

Seller Motivation

The seller, The Pizzuti Cos., is likely disposing of the asset to capitalize on favorable market conditions and to reinvest in new development projects, aligning with their portfolio strategy.

Market Signal

This transaction signals strong institutional confidence in the Phoenix industrial market, reflecting a broader trend of increased investment in logistics properties post-COVID. The pricing suggests that institutional investors are willing to accept lower yields for high-quality, fully leased assets, indicating a robust demand for such properties.

Parties

BuyerPrologis →

Broker

Cushman & Wakefield

Location Analysis

Primary Market

AmazonIntelHoneywellUPSWalmart

The Phoenix metropolitan area has experienced significant population growth, with a 1.5% annual increase, driven by migration from higher-cost states. The median household income in Glendale is approximately $65,000, reflecting a growing consumer base and economic stability.

The submarket features several comparable properties, including the 1.1 million SF Prologis Park 303 and the 800,000 SF Liberty Property Trust facility, both of which have recently traded at similar cap rates. This competitive landscape underscores the demand for high-quality industrial assets in the area.

The Glendale industrial market has a limited supply pipeline, with only 300,000 SF currently under construction, indicating a low threat of new competition. This constrained supply supports continued rental growth and occupancy stability.

Cap Rate Context

The 5.10% cap rate for Cotton 303 is slightly below the Phoenix industrial market average of 5.25%, suggesting a premium for its quality and location. Recent transactions in the area have ranged from 4.75% to 5.50%, indicating a healthy investment climate with manageable risk.

Rent Growth

Given the strong demand for logistics space in Phoenix, rents are projected to grow by 3-4% annually, supported by low vacancy rates and increasing e-commerce activity. Current asking rents in the submarket are around $1.10/SF, with upward pressure expected.

Value-Add

There are limited value-add opportunities due to the property's recent delivery in 2022 and 100% occupancy. However, potential exists for lease renegotiations or expansions with Cubework.com, which could enhance rental income.

Tenant Assessment

Investment Grade

Cubework.com

Rollover Risk

With the property fully leased, there is currently no immediate rollover risk. However, monitoring lease expiration dates will be essential to mitigate future vacancy risks.

Concentration

The property is single-tenant, which introduces concentration risk; however, Cubework.com’s strong market position mitigates this risk significantly.

Risk Factors

Single-tenant concentration risk

Medium

To address this risk, the buyer could negotiate longer lease terms with Cubework.com or explore opportunities to diversify the tenant mix through subleasing or future expansions.

Executive Signals

“Together, we're expanding that success in Europe—combining long-term capital with our operating platform to scale high-quality logistics assets across key markets.”

Ted Eliopoulos·Prologis·bullish

“Despite a 15% rise in capex due to supply chain issues, we achieved a 97.1% occupancy rate and an 8.2% increase in rental rates year-over-year.”

Hamid Moghadam·Prologis·bullish

“This joint venture with GIC builds on that momentum by pairing our platform and development expertise with a partner that shares our long-term perspective.”

Dan Letter·Prologis·bullish

“This joint venture with GIC builds on that momentum by pairing our platform and development expertise with a partner that shares our long-term perspective.”

Dan Letter·Prologis·bullish

“Build-to-suit activity continues to be one of the clearest signals of customer conviction across our business.”

Dan Letter·Prologis·bullish

Market Comparables

Northwest Business Park