By james art 
PHOENIX — Private real properties developer Lincoln Property Co. has acquired a 16.25-acre industrial property in Tempe that is minutes from Sky Harbor International Airport, according to a news release.
The global real estate giant plans to demolish the current one-story building located at 1515 W. 14th Street. Lincoln will then transform the $18.3 million property into a high-end industrial campus called Sky Harbor Logistics.
The developers plan to start construction on the new project in the second quarter of 2025.
The property was built in 1977 as an industrial space and was converted in 2016 into office apartments. The current space occupies 218,268 square feet and features a 1,044-space parking garage.
CarMax leases part of the building, but the current lease is expiring.
What will the real estate developer build in Tempe?
Lincoln plans to clear the old building to make way for a 254,000-square-foot industrial campus. It will build two identical 127,000-square-foot buildings with a shared truck yard, according to a company press release.
“Phoenix is known for its ability to adapt successfully, often in tandem with the nation’s highest growth rates,” Lincoln senior executive vice president David Krumweide said in a release. “Sky Harbor Logistics is an excellent example of this adaptability, transforming an underutilized office asset into a brand new infill logistics space that does not exist in this area.
“We are proud of the extensive Lincoln experience we will bring to this project and are very excited to begin the next outstanding chapter for this site.”
The building will feature 32 feet of product storage, a 46-foot dock with 28 entry doors, upgraded sprinklers and windows for better natural lighting.
Sky Harbor Logistics will also be located on the outskirts of Arizona State University’s main campus, downtown shopping and dining Tempe is a significant draw for Lincoln.
“It’s a real niche to fill,” said Lincoln senior vice president John Orsak. “By embracing this type of redevelopment at Sky Harbor Logistics, we’re paving the way for new businesses, new jobs and all kinds of new collaborations.”