Southwest Product Corp’s 165K SF Building in Surprise Underway, Land Transacts

VIZZDA–August 23, 2012 – Moshe Silagi of Silagi Development has sold 23.62 acres within the Surprise Business Park II to Southwest Product Corp (SWP) for the construction of their new ±165K SF headquarters. The purchase price was $2,677,321 or $2.60 per SF with $200K Down (no debt recorded with sale).

The vacant I-1 zoned industrial land is located South of the Southwest corner of Cactus & Dysart Roads. Surprise Product Corp will be constructing a 166,985 SF Office, Warehouse and Manufacturing facility, inclusive of a 45,700 SF canopy, multiple truck wells, parking for 295 cars, and room for expansion.

News of the prospective building was announced earlier in June, followed by a development agreement between SWP and the City of Surprise, recorded July 24th, 2012. Following are some of the deal points:

  • Facility to be constructed & occupied by Aug. 2013 and cost no less than $10M 
  • Employ at least 120 people, City to offer Jobfair 
  • City provided 800 SF of temporary space at their AZTechCelerator facility 
  • City is to pay permit fees (estimated $130K expense) if occupied within 6 months of target date 
  • City to reimburse up to $90K in impact fees

Mr. Silagi previously acquired the land as an 81.05 acre assemblage on June 12th, 2009 for $4,696,814 or $1.33 per SF from National Bank of Arizona as bank owned property. Silagi plans for additional development on the remaining land, including a 418K SF spec industrial building dubbed ParkSkyway- whose size will make it the largest structure in Surprise. Southwest Product joins a growing number of businesses to enter the Surprise industrial area- including neighbors Rio Glass, Gestamp Solar, Brentwood Industries, and others.

By:

Hadden Schifman

Managing Director

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