IndiCap and VAC Development have secured the financing stack for Bethany Bay, a $31 million shallow-bay industrial development in Glendale, Arizona — marking what the co-developers describe as the first project of its kind to receive third-party institutional capital in the West Valley market. Berkeley Partners is providing senior financing, with Olive Point Capital contributing preferred equity. Newmark arranged the full placement. The project, located at 16380 and 16840 West Bethany Home Road along the Loop 303 corridor, broke ground in October 2025 with an August 2026 delivery target.
The financing structure reflects a broader market reality: speculative shallow-bay industrial projects rarely attract third-party capital at scale, particularly in markets where the lender community has limited underwriting history for the product type. Andrew Dunn, Principal at VAC Development, told Arizona Contractor & Community that "in today's capital market environment, securing funding for industrial development is incredibly difficult, especially for speculative projects." The two-building, 136,800-square-foot project targets tenants requiring suite sizes between 4,500 and 18,000 square feet — a segment of the market where new Class-A product has been essentially absent despite sustained demand from the region's distribution and light manufacturing base.
Building 1 spans 98,060 square feet with 28-foot clear heights and 5,000 amps of power. Building 2 totals 39,226 square feet with 24-foot clear heights and 2,500 amps, and features pre-built speculative office suites with direct warehouse connections — a design choice intended to reduce tenant buildout time and accelerate lease-up. Ware Malcomb is serving as architect and civil engineer, FCL Builders as general contractor, and Colliers as leasing broker. The project is VAC and IndiCap's second joint venture in the Phoenix metro, with their first collaboration at Chandler Bay currently under construction in the Southeast Valley.