Gilbert industrial building leased to Frito-Lay sells for $26.8M

PHOENIX — A Gilbert industrial building that is fully leased to Frito-Lay recently sold for $26.8 million, according to a Friday announcement.

Simone Charitable Foundation was the company that bought the building from ATLAS Capital Partners, a Scottsdale-based real estate development and investment firm.

The industrial building is 60,500 square feet and sits on 8.16 acres, located off of Lindsay and Germann roads not far from Chandler Municipal Airport.

Details on Gilbert industrial building sold for $26.8M

ATLAS purchased the land the building is on in 2022 and afterwards put in place a low-coverage development plan that attracted the attention of Frito-Lay. That led to a full-building, build-to-suit lease between the two.

“A colleague spotted this oddly shaped parcel during a weekend drive through Gilbert. Most developers would have passed on its odd geometry, which doesn’t align with a traditional industrial site, but we recognized the potential,” ATLAS CEO Chris Walton said in an announcement.

“That creativity resulted in a distinctive project the market was waiting for — even if it didn’t know it yet — and became the beta for our new regional, low-coverage strategy. In the process, it gave Frito-Lay a new industrial configuration that hadn’t existed to date.”

ATLAS’s low-coverage strategy combines industry-standard industrial buildings with outdoor yards that are secured, screened, paved and lit in order to provide operational versatility.

The recently sold building has a 28-foot clear height, 15 dock-high doors, two grade-level doors and 5,000 square feet of office space.

ATLAS obtained a $12 million construction loan in 2023 while building the industrial development.

“Land-heavy industrial developments remain undersupplied in metro Phoenix, though demand is rising sharply,” ATLAS COO and General Counsel Dan Gauthier said. “This project has been a resounding validation of our low-coverage thesis, first through a full-building pre-lease to Frito-Lay and then through a highly successful sale. We’re now scaling this product type across strategic Mountain and Sun Belt markets, beginning with our next major project, ATLAS Exchange.”

ATLAS was established in 2020 and has developed and obtained more than $450 million in projects. This includes the Gilbert development, a 38-acre site in Mesa called ATLAS Exchange and a 119,950-square-foot warehouse in Goodyear.

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