KKR has purchased a three building industrial portfolio located in highly infill locations in Phoenix, Arizona from a joint venture between PCCP, LLC and Hopewell Development LP.
All three assets, totaling 419,350 square feet, were built in 2020 and are located approximately twenty to thirty minutes’ driving distance from Phoenix’s Central Business District.
The buildings feature state-of-the-art physical characteristics, including 28’ to 32’ clear heights and offer flexible configurations for both single and multi-tenant occupancy. The newly delivered portfolio is currently in lease-up with a rent roll that is approximately 70% leased at acquisition.
The acquisition expands KKR’s industrial real estate footprint in the greater Phoenix market to nearly 2.6 million square feet.
“Phoenix has been one of the fastest growing major markets in the US over the past several years and we’re very excited to add these high quality assets which are complementary to our footprint in the market,” said Ben Brudney, a Director in the Real Estate group at KKR.
“These newly built assets offer us the opportunity to take advantage of strong leasing momentum in the Phoenix market with near term upside through the lease up of the remaining vacancy,” he added.
Across its funds, KKR owns nearly 36 million square feet of industrial property in strategic locations across major metropolitan areas in the U.S.