WG Group Acquires Foothills Corporate Centre I in Phoenix for $16.25M

WG Group has acquired Foothills Corporate Centre I at 14415 South 50th Street in Phoenix, Arizona for $16.25 million, marking the firm's first acquisition in the Phoenix market. The 110,360-square-foot single-story office building was purchased in partnership with the Krausz Companies from SDC Foothills Inc. The property sits within the Ahwatukee submarket adjacent to Interstate 10, with direct visibility to approximately 206,000 vehicles per day and convenient access via Ray Road. At closing, the building was 64 percent leased to a single tenant.

Newmark's capital markets team — including CJ Osbrink, Scott Scharlach, and Kevin Shannon — represented both seller and buyer in the transaction. Osbrink noted that the building's existing infrastructure and clear heights, combined with its highly accessible I-10 location, position it as a strong candidate for conversion from back-office use to flex and light industrial occupancy — a product type where demand in the Phoenix market has outpaced available supply. WG Group's business plan reflects that thesis: the firm intends to reposition the building toward flex and light industrial tenants to capitalize on the structural shift in demand occurring across the Ahwatukee and Southeast Valley submarkets.

The Foothills acquisition established WG Group's presence in Phoenix and added a high-profile value-add conversion opportunity to a portfolio that has historically concentrated on Las Vegas office, retail, and residential. The building's single-story layout, functional clear heights, and location directly adjacent to a major interstate interchange are attributes that translate well to the flex conversion strategy, and the 64 percent occupancy at acquisition provided an immediately actionable vacancy component for repositioning.