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Big Moves in Phoenix: BKM Capital Partners Expands Portfolio
In a notable transaction estimated at $168 million, BKM Capital Partners, alongside Kayne Anderson Real Estate, has strengthened its position in the burgeoning Phoenix real estate market by acquiring a sizable small-bay light industrial portfolio. This acquisition comprises eight properties totaling 889,352 square feet across two key submarkets: the Airport and Tempe areas. With this move, BKM’s holdings in Arizona have escalated to approximately 4.5 million square feet spread over 27 properties.
Why Light Industrial Assets Are Hot Right Now
The significant demand for light industrial spaces, driven by the rise of e-commerce and logistics, underscores the strategic importance of this acquisition. The properties feature 364 units, which are currently filled to nearly 90% capacity by a diversified tenant mix, a crucial factor for steady rental income. As purchasing and distribution trends continue to evolve, investments in such properties are seen as a safe haven in the commercial real estate market.
What This Means for BKM's Growth Strategy
With this latest purchase, BKM has now completed six investments through its joint venture with Kayne Anderson, which began in May with a $1.5 billion fund aimed explicitly at value-add light industrial opportunities in emerging metropolitan areas. This strategic focus is expected to foster their growth trajectory as they tap into markets that present substantial growth potential.
A Snapshot of the New Portfolio
The portfolio encompasses two primary properties in the Airport submarket: the Elwood Industrial Center, which includes four buildings and spans 133,076 square feet, and the Roeser Commerce Center with two buildings totaling 59,620 square feet. The remaining properties are located within the Tempe submarket, signifying BKM’s deliberate efforts to establish a robust presence in regions poised for further economic development.
Local Impact: A Growing Market
As BKM’s operations expand, the investments in these light industrial spaces are likely to stimulate local job growth and contribute to the overall economic health of the Phoenix area. By creating avenues for local businesses and attracting new tenants, BKM is not only benefiting its portfolio but also aiding in the economic revitalization of these communities.
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