A Canadian investment firm has shelled out $44.15 million for a fully leased distribution building at 3809 E. Watkins St. in Phoenix, a move that keeps Amazon’s pharmacy arm firmly planted on the site. The two-story facility, at roughly 175,000 square feet, houses PillPack under an existing lease that will remain in place. The sale highlights how investors are still hungry for Phoenix logistics properties that combine serious power capacity with quick airport access.
Deal details and tenant
According to CoStar, Belkorp acquired the property for $44.15 million, or roughly $253 per square foot. PillPack’s location page lists a Phoenix facility at 3809 E. Watkins Street, confirming the tenant at the site and tying the address directly to Amazon’s pharmacy operation.
Brokers and building features
Cushman & Wakefield brokers represented the transaction, and as ConnectCRE reported, the seller had held the asset in an LBA Realty fund. ConnectCRE also noted that the facility includes about 8,000 amps of power and direct access to I-10, I-17 and Loop 202, features brokers said made the building especially compelling to buyers. Market tracker Traded lists the property at roughly 174,800 square feet and shows the sale recorded in late May.
Why investors are buying industrial in Phoenix
Investors have been gravitating toward stabilized, power-ready industrial assets as speculative construction cools and leasing activity stays elevated across the metro. Cushman & Wakefield’s Q4 2025 MarketBeat documented stronger than expected leasing and a pullback in new speculative deliveries, trends that make long-term, Amazon-backed operations easier to underwrite than vacant big-box space. That dynamic helps explain institutional interest in a leased PillPack hub near Sky Harbor, where the combination of power, infrastructure and a credit tenant checks a lot of boxes for buyers.
Local impact…