Phoenix Continues as High Conviction Market for KKR

KKR recently acquired an approximately 226,000-square-foot class-A industrial distribution property in the Papago industrial park, located in the infill Southwest Valley submarket of Phoenix. The seller was CenterSquare Value-Added Fund IV and its joint venture partner CapRock Partners.

The property was built in 2000 but recently renovated and leased on a long-term basis to an industrial building products manufacturer. It features 30-foot clear heights, a 130-foot truck court and direct rail access. The distribution facility provides access to downtown Phoenix and coverage of the MSA with its location off I-10, and proximity to Highway 202 and I-17.

The purchase grows KKR’s industrial real estate portfolio in Phoenix to approximately 2 million square feet and was made through the KKR Real Estate Partners Americas III fund.

“Phoenix continues to be a high conviction market for our real estate business, and we are pleased to grow our presence in the market with the purchase of this well-located and modern industrial distribution property,” said Ben Brudney, a director in the real estate group at KKR who oversees the firm’s U.S. industrial investments.