Irvine, CA-based real estate developer BKM Capital Partners announced this week that it had acquired a five-building property in Tempe, Arizona for $58 million. The Tempe Commerce Park portfolio was sold by Core Fund Tempe Property LLC, a company formed by the Ohio Police & Fire Pension Fund in Columbus, Ohio. BKM purchased the property through BKM Industrial Value Fund I L.P. with a $40 million loan from CIT Bank in Pasadena, California. The deal was brokered by the Phoenix office of JLL, with Invesco Realty Advisors representing the seller.
"The Tempe submarket continues to demonstrate strong economic drivers and is currently one of the most dynamic submarkets in the Phoenix metro," said Brian Malliet, CEO and Co-Founder of BKM Capital Partners, in a press release. "Job and housing growth are on the rise, providing a significant opportunity to create value for our investors. This submarket is also experiencing a significant demand for back office users, which is further driving up lease rates in the business parks throughout the region."
"The asset's prime central location and below-market rents will provide a tremendous opportunity for long-term growth," added BKM Capital Partners' Director of Acquisitions Brett Turner. "As the current tenant leases roll, we will be able to attract high quality tenants who are willing to pay a premium for the property's desirable location and the updated amenities that BKM is planning."
The 535,976 square-foot, five-building property was completed in phases between 1996 – 2001 and is currently 100% occupied. Minutes from Phoenix Sky Harbor Airport and Arizona State University, Tempe Commerce Park offers convenient access to I-10 & Loop-101 freeways in the heart of Tempe within the "Silicon Desert submarket."
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