Clearly, Phoenix is an important market for KKR as it expands in 2021 and beyond. The firm recently acquired a five-building industrial portfolio totaling approximately 540,000 square feet for a purchase price of $68 million. The transaction marks KKR’s second industrial real estate acquisition in the Phoenix market in 2021 and expands KKR’s total Phoenix industrial footprint to approximately 2.5 million square feet.
The portfolio consists of five shallow bay last-mile warehouses located in a highly infill submarkets less than 10 miles from downtown. The portfolio was 100 percent leased at acquisition and features an average clear height of 25 feet and an average vintage of 1988.
“The favorable demographic trends in Phoenix that we saw in 2019 and 2020 have continued to accelerate in 2021,” said Ben Brudney, a director in the real estate group at KKR.
KKR is making the investment through its Americas opportunistic equity real estate strategy. Across its funds, KKR owns more than 33 million square feet of industrial property in strategic locations across major U.S. metropolitan areas.
Lisa Brown has more than 30 years of experience in corporate communications and marketing management with organizations including Grubb & Ellis, Marcus & Millichap and NAIOP.
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