Case Study: Arizona Industrial
A real-world example of ARID's repositioning strategy from under-managed asset to stabilized, income-producing industrial property in Mesa, AZ.
Asset Type
Industrial
Market
Mesa, AZ
Strategy
Reposition + Lease-Up
Before & After: The ARID Repositioning
When ARID identified this Mesa, Arizona industrial asset, the largest tenant was in the process of filing bankruptcy. The seventy-three-year-old owner was left with a vacant building full of debris, no income stream, and $157,000 in deferred maintenance and capital improvements ahead of him. The asset had been self-managed for years, with rents and lease terms well below what the submarket was supporting at the time. Through disciplined underwriting and hands-on execution, the property was repositioned from tenant bankruptcy to a signed lease in five months, with annual rent moving from $144,000 to $252,000.
Before ARID Involvement
Rental Income
$144,000 per year
Conditions
  • Vacant with extensive cleanup required
  • Below-market rents
  • Tired office and warehouse fixtures
  • Under-managed operations
After ARID Repositioning
Rental Income
$252,000 per year
Outcomes
  • Market-aligned lease rates and terms
  • Stabilized occupancy
  • Upgraded office and warehouse fixtures
  • Improved tenant credit
Results at a Glance
The numbers speak for themselves. The owner retained the asset, kept the monthly income, and stayed out of the operational work entirely. ARID funded the capital improvements and ran the reposition from construction through lease-up. The owner contributed no capital and made no day-to-day decisions. By the end of the process, monthly income had grown 75% under professional management, and the original ownership position was intact.
$9,000
Additional Monthly Income
Net new cash flow
75%
Rental Income Growth
From $144K to $252K annually
27%
Property Value Increase
From $3.5M to $4.455M ($955K)
5
Months to Stabilize
From acquisition to stabilized asset
$157K
Improvement Costs Funded
ARID funded all renovations to reposition and lease the property
$0.00
Cost to Owner
The owner remained informed but passive during the process
Industrial Value Creation, Aligned Ownership
Who We Are
ARID is a real estate investment, development and management firm focused exclusively on industrial assets in the Southwest United States. We specialize in repositioning under-optimized properties, improving cash flow, and creating long-term asset value through disciplined underwriting and hands-on execution.
We operate with an institutional mindset, conservative capital structures, data-driven analysis, and a relentless focus on durable cash flow. Every property we touch is one we would buy ourselves.
What Sets Us Apart
Real estate advisory models are typically transactional or fee-based. Brokers are incentivized to sell. Property managers are incentivized to collect fees. Without equity participation, long-term alignment is inherently limited.
ARID takes a different approach. We invest equity and lead the repositioning process. Our compensation is tied to performance, and our capital is aligned with the outcome. We seek measurable operational improvement and structured long-term value creation.
OUR MODEL
Built Around Three Principles
Alignment of Interests
We invest equity alongside you. Our upside is tied directly to yours.
Conservative by Nature
Institutional underwriting with disciplined, conservative capital structures.
Long Term Optionality
Hold, exchange, refinance, or sell.
Our Process: How ARID Partners with Owners
ARID partners with industrial building owners who believe their property may be under-optimized. Our four-step process is designed to create institutional-grade outcomes without disrupting ownership.
Step 1: Underwrite
ARID conducts a no-cost, institutional-grade underwriting of your property to identify upside potential.
Step 2: Partnership
If the analysis shows meaningful upside, we form a partnership. You contribute the property. ARID funds the improvements. We agree on the current property value and the improvement plan before anything begins. Ownership in the partnership is split based on what each side puts in. You hold equity equal to the value of the property. ARID holds equity equal to the cost of the improvements funded.
Step 3: Execute
ARID manages all legal documentation, accounting, insurance, capital improvements, construction management, LOI/lease negotiations, and full-service property management.
Step 4: Stabilize
Once stabilized, the owner may maintain the structure, contribute to ARID's portfolio, or sell.
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Our Team
Wil Hogue
Managing Partner
Before founding ARID Partners, Wil served as Director of Industrial Development at Greystar, where he managed more than 2.4 million square feet of Class A industrial projects valued at $385 million. During his tenure, he facilitated $148 million in debt and equity raises, transacted over 180 acres of land, and completed due diligence for more than 85 projects throughout the region.
He holds a Master of Real Estate Development from Arizona State University, where he serves on the MRED Alumni Association Board, and a Bachelor of Science in Business from South Dakota State University.
Lauren Hogue
Partner
Prior to joining ARID, Lauren served as Director of Asset Management and Underwriting for CALCAP Advisors where she structured and deployed $12 million in preferred equity. Earlier in her career, Lauren served as Manager of Financial Planning & Analysis at VEREIT, Inc., a publicly traded REIT with over $15 billion in assets, where she led financial forecasting for a national portfolio of over 4,000 properties. She also managed fund-level forecasting for non-traded Cole Capital REITs totaling more than $120 million.
She holds dual Bachelor of Science degrees in Finance and Management from Arizona State University.
Advisory Board
Blair Koblenz
Blair has worked as a financial officer and principal for real estate investment companies for over 30 years. His career commenced as a Certified Public Accountant and transitioned into private real estate syndication. His most recent leadership role was with Cole Real Estate Investments in Phoenix, Arizona, where he spent approximately 16 years.
Mr. Koblenz is a Certified Financial Planner, holds FINRA securities licenses and an Arizona real estate license, and serves as an active faculty member teaching real estate fundamentals, real estate capital markets, and the REIT Portfolio Practicum investment course.
Michael Bronska
Michael has developed, designed, and managed corporate projects across the United States for 30 years, including projects for Salt River Project, Avnet, Gannett Corporation (USA Today), University of Phoenix, and Phelps Dodge (Freeport McMoran).
Mr. Bronska has been involved as an executive or principal in numerous real estate developments including several well-known master plan communities. He is a former member of the Urban Land Institute (ULI), a licensed architect in the State of Arizona, and holds a property tax valuation license in Arizona.
Get Started with ARID Partners
At ARID, we work with experienced industrial property owners to evaluate their current position and determine whether a partnership makes sense. The first conversation is confidential and carries no obligation.
Call Us
602-694-5175
Visit Us
2701 E Camelback Rd, Ste 150
Phoenix, AZ 85016
Disclosure
Results are specific to that property and are not a guarantee of future performance. This content is for informational purposes only and does not constitute tax, legal, or investment advice. Please consult qualified tax, legal, and financial advisors before making decisions regarding your real estate holdings.