BKM Adds 227 KSF to Phoenix Portfolio
- Mar 03, 2017
Phoenix—BKM Capital Partners, an institutional fund manager with a niche focus on value-add multi-tenant light industrial warehouse, has announced the purchase of Northwest Business Center, located in Phoenix, for the price tag of $17.2 million. Robert Buckley, executive director at Cushman & Wakefield, represented the seller.
Located at 2310-2440 W. Mission Lane, 9014-9034 N. 23rd Ave. and 9013-9033 N. 24th Ave., the 227,603-square-foot industrial business park comprises 11 multi-tenant buildings. BKM intends to invest $3.5 million in capital improvements to the properties with plans to include a new rooftop, new parking lot, an improved HVAC system, as well as upgrades to the exterior and new signage.
“Our comprehensive capital improvement program will allow us to attract and retain high quality tenants, as well as drive rent growth as leases roll. We also plan to immediately increase cash flow by leasing up vacant space as the building is currently 77-percent occupied,” Brett Turner, director of Acquisitions at BKM Capital Partners, said in a prepared statement.
Northwest Business Center is located along the I-75 corridor that connects the I-10 Freeway to the south and the Loop 101 to the north. “We now own four out of the seven business parks along the I-17 corridor. This gives us control of the surrounding competitive set, bringing our holdings to more than 700,000 square feet in the immediate vicinity. Through this existing presence and shared resources, we can further increase net operating income by drastically reducing operating costs and leasing vacant space,” Turner added in prepared remarks.
As reported by Brian Malliet, CEO & co-founder of BKM, the deal marks the 12th acquisition in the Phoenix area, bringing the company’s portfolio in the metro to more than 2.1 square feet.
Image courtesy of BKM Capital Partners