EJF Capital and Crimson Canyon Close $23.4 Million Construction Loan for a Warehouse in the Accelerating Phoenix Market

The Buckeye, AZ project will meet intense demand for warehouse space in an emerging distribution warehouse submarket

ARLINGTON, Va.--()--EJF Capital LLC (“EJF”) and joint venture partner Crimson Canyon today announced the close of an approximately $23.4 million construction loan from Pacific Premier Bank to develop a 326,000-square foot warehouse outside of Phoenix, AZ. The project is in an area certified as a “Qualified Opportunity Zone” under the Tax Cuts and Jobs Act of 2017 (“TCJA”), which offers investors potential tax benefits to invest into Qualified Opportunity Zones with the aim of spurring economic growth in lower income areas.

EJF OpZone Fund II LP will be committing $19.2 million in equity to the project, which is in the City of Buckeye, AZ, 35 miles west of downtown Phoenix.

Emerging warehouse submarket
This is a fantastic project that is meeting intense demand for industrial warehouse space,” said Asheel Shah, EJF Senior Managing Director and Head of Real Estate Development. “Buckeye is emerging as a leading distribution warehouse submarket not only because of the availability of land, but because of its strategic location. We and our partner Crimson Canyon are thrilled to be working with Pacific Premier Bank, which is supporting our efforts and shares our vision of the market.”

The City of Buckeye offers an ideal location for our new, state-of-the-art warehouse in a booming market,” added Dominic Alba, Managing Partner of Crimson Canyon LLC, a Scottsdale-based developer and real estate investment firm focused on the Southwestern U.S. “The distribution warehouse will provide convenient truck access not only to greater Phoenix, but to major ports in Los Angeles and Long Beach as well as to the Southwestern U.S.”

Key location
The Project will sit less than a mile from the I-10 and Miller Road interchange, as well as other major highways. A Buckeye location permits truckers to complete a single-day trip to and from the Ports of Los Angeles and Long Beach within an 11-hour drive time.

Buckeye’s emergence
Many of the nation’s largest retailers and third-party logistics providers have large distribution centers in the Phoenix metro area, making Buckeye a key location in the market. Coupled with its availability of land, Buckeye’s location on the west side of Phoenix has helped fuel its growth. The city’s population has surged to 104,000 persons in 2021 from an estimated 6,500 persons in 2000 — making it one of the fastest growing cities in the U.S.1

In the meantime, Phoenix, the 10th largest MSA in the nation by population with 5 million residents, continues to expand.2 It is among the nation’s largest growing MSAs, adding nearly 75,000 citizens annually since 2010. 2 Phoenix’s job market is also on the rise, with the city adding 46,000 jobs annually in the decade prior to the COVID-19 pandemic.3

About EJF Capital
EJF Capital LLC is a global alternative asset management firm headquartered outside of Washington, D.C. As of March 31, 2022, EJF manages approximately $5.1 billion across a diverse group of alternative asset strategies. The firm was founded in 2005 by Manny Friedman and Neal Wilson. Since inception, EJF has focused on regulatory event-driven investment themes including its strategy to invest in Qualified Opportunity Zones.

About Crimson Canyon
Crimson Canyon invests and develops private real estate assets across the Southwest. Crimson offers investors access to commercial real estate development, real estate-related equity investments and other real estate-related assets, each of which Crimson believes are compelling from a risk-return perspective. The company is currently focused on industrial, self-storage, data centers, residential communities, and land. Crimson has been investing in Arizona real estate in previous ventures for more than a decade.

1 Source: City of Buckeye, AZ
2 Source: US Census Bureau, 2019 American Community Survey, 5-year estimates
3 Source: Bureau of Labor Statistics, Current Employment Statistics, State and Metro Area, November 2021

Contacts

Media:
Nathaniel Garnick/Kevin FitzGerald
Gasthalter & Co.
(212) 257-4170

EJF Investor Relations:
investorrelations@ejfcap.com
http://ejfopzone.com
http://ejfcap.com
(571) 982-7281

Contacts

Media:
Nathaniel Garnick/Kevin FitzGerald
Gasthalter & Co.
(212) 257-4170

EJF Investor Relations:
investorrelations@ejfcap.com
http://ejfopzone.com
http://ejfcap.com
(571) 982-7281