NEW YORK--(BUSINESS WIRE)--KKR, a leading global investment firm, today announced that KKR has acquired two multi-tenant industrial buildings totaling approximately 154,000 square feet in the Papago industrial park, located in the highly infill Southwest Valley submarket of Phoenix, Arizona. The transaction grows KKR’s industrial real estate footprint in the Phoenix metropolitan statistical area (MSA) to nearly two and a half million square feet.
The property consists of two multi-tenant buildings completed in 1997. Located in close proximity to the I-10 highway, a major cross-country trucking artery, it offers direct access to downtown Phoenix in approximately 10 minutes. Each building was 100% leased at acquisition with a weighted average lease term of approximately two years. KKR acquired the asset from Mountain West Industrial Properties, an affiliate of Baron Properties.
“We are excited to grow our portfolio in Phoenix with the purchase of these two strategically located infill buildings,” said Ben Brudney, a Director in the real estate group at KKR who oversees the firm’s industrial investments in the United States. “The growth in Phoenix through the first three quarters of 2021 has been exceptional and we continue to believe there are strong demand drivers for well located, last mile assets like this one.”
KKR is making the investment through the KKR Real Estate Partners Americas III fund. Across its funds, KKR now owns over 35 million square feet of industrial property in strategic locations across major MSAs in the U.S.
Since launching a dedicated real estate platform in 2011, KKR has grown real estate assets under management to approximately $36 billion across the U.S., Europe and Asia as of September 30, 2021. The global real estate team consists of over 135 dedicated investment professionals, spanning both the equity and credit businesses.
CBRE brokered the transaction.
About KKR
KKR is a leading global investment firm that offers alternative asset management and capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of The Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.
