Metro Phoenix Business Park Trades for $38 Million
BKM Capital Partners acquired the 153,000 square foot light-industrial Mesa Ridge Business Park from an entity owned by Randall Investment Group for a price of $38 million. The complex has 39 units spread across seven buildings, situated in Mesa, Arizona. The property is adjacent to Falcon Field and Boeing’s million-plus square foot manufacturing facility.
In-house property and construction teams will embark on an asset improvement program encompassing upgrades to the parking lots, landscaping, HVAC, lighting and improvements to the roofs of each building.
BKM’s Brett Turner believes the property, which is 97% occupied, has a lot of potential, “In addition to the property improvements, we expect to capture additional value since existing in-place rents, which are approximately 25% below market, will deliver significant upside as leases roll. Market experts project a high-end five-year average Phoenix annual rental growth rate of 10.8%.”
Mike covers our Texas and Phoenix/Southwest regions. He is a veteran news reporter who spent 10 years in radio and television news, mostly in Tucson, Arizona. Following his career in the media, he spent ten years as a communications executive for a publicly traded development company. Mike is married with three boys and three Huskies.