Investcorp Purchases $85M Industrial Campus
The firm has acquired the five-property asset in Tempe, AZ from BKM Capital Partners.
TEMPE, AZ – Investcorp has acquired a five-building, multi-tenant, light industrial park in Tempe, AZ from BKM Capital Partners for $85.4 million.
The 536,051-square-foot asset, Tempe Commerce Park, encompasses five properties located at 7340, 7350 and 7360 S. Kyrene Rd. and 7343 and 7333 S. Hardy Dr. in Tempe. The properties are situated on 37.7 acres of land.
Tempe Commerce Park is currently 93% leased to eight tenants.
Tempe Commerce Park was acquired in 2015 and was held by BKM’s Industrial Fund I.
“We recognized the value-add potential of this asset and market very early on, which enabled us to deliver an attractive product to the market,” says Brett Turner, managing director of acquisitions at BKM Capital Partners. “This transaction demonstrates the strength of our investment thesis, our operating platform and our commitment to generating returns for our investment partners.”
Constructed between 1995 and 1997, the buildings have been institutionally owned and maintained since that time.
“The deal is proof that our integrated operating platform continues to create value in distressed and undermanaged light industrial assets,” says Turner. “The success we achieved at this property is due to our hands-on management coupled with a strategic capital improvement plan, resulting in stabilized cash flow and increased net operating income.”
The property’s improvements included new paint, entries and awnings and office space conversions to industrial uses. The properties each feature 24- to 28-foot clear ceiling heights and ample parking.
The site is located near Sky Harbor International Airport and downtown Phoenix.
JLL worked on behalf of the seller to handle the transaction, and worked on behalf of the buyer to arrange an acquisition loan. JLL also worked on behalf of the new owner to place the five-year, floating-rate acquisition loan with MetLife Real Estate.
Representing the seller was the JLL capital markets investment sales advisory team led by senior managing director, Mark Detmer and senior director, Ryan Sitov. The team additionally comprised JLL’s local market experts, EVP, Steve Sayre and managing directors, Mark Gustin and Dave Seeger.
Representing the new owner, was the JLL capital markets debt placement team comprising executive managing director, Kevin MacKenzie, senior director, Michael Gigliotti and director, Jason Carlos.