KKR has acquired a five building industrial real estate portfolio in Phoenix, Arizona totaling 540,000 square feet for $68 million.
The portfolio consists of five shallow bay, last mile warehouses located in a highly infill submarkets less than 10 miles from downtown Phoenix.
The industrial real estate portfolio was 100% leased at acquisition and features an average clear height of 25’ and an average vintage of 1988, said KKR in a statement.
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 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. “We are excited to further grow our footprint in the market with the addition of this portfolio. Phoenix is an important market for us as we continue to expand in 2021 and beyond.”
KKR is making the investment through its Americas opportunistic equity real estate strategy. Across its funds, KKR owns over 33 million square feet of industrial property in strategic locations across major metropolitan areas in the U.S.