WG Group Acquires 110,360 SF Foothills Corporate Centre I for Industrial Conversion

REBusinessOnline reported WG Group's acquisition of Foothills Corporate Centre I, a 110,360-square-foot single-story office building at 14415 South 50th Street in Phoenix, from SDC Foothills Inc. The purchase — made in joint venture with the Krausz Companies — was framed by the trade publication around the buyer's stated intention to convert the asset from back-office to flex and light industrial use, positioning the acquisition within a broader wave of office-to-industrial conversion activity that gained momentum in Phoenix's secondary submarkets during 2022.

The building was 64 percent leased at the time of sale, with a single tenant occupying the occupied portion of the space. The undisclosed purchase price was reported by other sources as $16.25 million. Newmark's CJ Osbrink, Scott Scharlach, and Kevin Shannon represented both parties in the transaction. The building's clear heights and I-10 accessibility — offering visibility to roughly 206,000 vehicles per day — are features consistent with the flex conversion strategy. The property's location in the Ahwatukee submarket, adjacent to the freeway and with straightforward access from Ray Road, is consistent with the site requirements of light industrial tenants who prioritize logistics connectivity over urban-core proximity.

For WG Group, the Foothills acquisition represented the firm's entry into the Phoenix market and a strategic expansion beyond the Las Vegas portfolio that had historically defined its investment activity. The flex industrial conversion thesis aligned with the direction WG Group — under the leadership of Benjy Garfinkle and Andrew Dunn — had been developing as the Phoenix market's industrial supply-demand imbalance widened through the post-pandemic cycle.