ATLAS Capital Partners Sets Market Highs with Gilbert, Arizona Industrial Building Sale

Trademark ATLAS low-coverage development is fully leased to Frito-Lay (PepsiCo)

Scottsdale-based ATLAS Capital Partners (ATLAS) has announced the $26.8 million sale, or $443 per-building-square-foot, of a Gilbert, Arizona industrial project. The property, which serves as a model for the company’s growing portfolio of best-in-class, low-coverage developments, closed at a 5.28% CAP, achieving the lowest CAP rate and highest price-per-square-foot this year for a Phoenix industrial building sale.

The 60,500-square-foot building sits on 8.16 acres at 3797 S. Silverado Court in Gilbert, Arizona. It fronts the Loop 202 Santan Freeway just north of Germann Road, and is minutes from Chandler Municipal Airport.

The single-tenant building is fully leased to Frito-Lay, a division of PepsiCo.

ATLAS purchased the Gilbert land site in 2022 and initiated a low-coverage development plan to accommodate the property’s unique shape. The approach quickly attracted the attention of Frito-Lay, leading to a long-term, full-building build-to-suit lease achieving a market-high rental rate.

“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,” said ATLAS CEO Chris Walton. “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 now regional, low-coverage strategy. In the process, it gave Frito-Lay a new industrial configuration that hadn’t existed to date.”

The ATLAS low-coverage strategy integrates institutional-grade industrial buildings with substantial outdoor yards that are secured, screened, paved and lit. This delivers the operational versatility today’s industrial users demand – from logistics giants to regional suppliers and contractors.

The Silverado Court building features a 161-foot building depth with 28-foot clear height, 15 dock-high doors, two grade-level doors and 5,000 square feet of office. It offers immediate Loop 202 access via the Gilbert Road and Lindsay Road interchanges, and is minutes from 3.5 million square feet of retail and restaurant amenities at the intersection of Gibert and Germann roads.

Cushman & Wakefield represented ATLAS in the building sale. Colliers represented the buyer, Simone Charitable Foundation.

“Land-heavy industrial developments remain undersupplied in metro Phoenix, though demand is rising sharply,” said ATLAS COO and General Counsel Dan Gauthier. “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 Exchange is the company’s largest land acquisition to date, spanning 38 acres within Mesa, Arizona’s Elliot Road Tech Corridor and the Eastmark masterplanned community. The project includes four modern, high-finish buildings ranging from 40,000 to 90,000 square feet. With lot sizes up to 12 acres, each freestanding building offers generous secured, paved and lit yards. The project also includes amenity-rich additions such as ramadas and pickleball courts, with proximity to the Loop 202 and Mesa Gateway Airport, and corporate neighbors such as Meta, Apple, Google, Amazon, Boeing and more.

ATLAS Exchange offers built-to-suit options, for-sale and for-lease buildings, and land sites for sale. For more information, contact exclusive listing brokers Pat Harlan and Steve Larsen of JLL, at 602.282.6300.

Since its establishment in 2020, ATLAS has developed and acquired more than $450 million in projects, including ATLAS Exchange, the Frito-Lay development, and an approximately 119,950-square -foot warehouse facility in Goodyear, Arizona, leased to Fieldcore Services, a subsidiary of General Electric.