Fund management firm, BKM Capital Partners, acquired Northwest Business Center, an 11-building multi-tenant light industrial business park totaling 227,603 square feet in Phoenix, Arizona for $17.2 million.
The business park is located at 2310-2440 W. Mission Ln., 9014-9034 N. 23rd Ave., and 9013-9033 N. 24th Ave. Phoenix, Arizona. Robert Buckley at Cushman & Wakefield represented the seller.
This is BKM’s 12th acquisition in the Phoenix metro bringing its holdings to more than 2.1 million square feet in the area, according to Brian Malliet, CEO and Co-Founder of BKM Capital Partners.
Northwest Business Center is located along the 1-17 corridor, one of the Phoenix Metro’s major thoroughfares, which connects the I-10 Freeway to the south and the Loop 101 Freeway to the north. This central location strategically positions the property to provide easy access to the entire metro area.
“We continue to see tremendous value throughout the Phoenix MSA, especially in the Northwest submarket,” explains Malliet. “The Northwest submarket has historically demonstrated incredibly high industrial occupancy and currently has no future industrial construction planned throughout the area. This will drive long term demand for this asset and place upwards pressure on rents over time, allowing us to maximize our ROI.”
BKM plans to implement a $3.5 million capital improvement program to the property, according to Brett Turner, director of Acquisitions at BKM Capital Partners.
Turner said the facility is 77 percent occupied.
Planned improvements include a new roof, new parking lot, an improved HVAC system and upgrades to the exterior including, paint, landscaping, and new signage, among others.
In addition to these renovations, the property will also benefit from BKM’s existing presence and other assets in the area, according to Turner.
“We now own four out of the seven business parks along the I-17 corridor,” explains Turner. “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.”