BKM Buys $58M AZ Warehouse/Office Portfolio

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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Bridge Development Secures $20M Loan for New Industrial Project

Bridge Development Partners, the Chicago, IL-based real estate developer, has secured a $20.1 million senior secured construction loan provided by CIT Bank, the U.S. commercial bank subsidiary of CIT. The funds will be used to construct a new Class A distribution building in Union, NJ. Terms of the transaction were not disclosed.

Matt Galligan, President of CIT Real Estate Finance, said in a statement, "We like the New Jersey industrial market as it is favorably positioned with easy access to New York City and serves as a central location between Boston and Washington DC. We're pleased to provide this financing to Bridge Development Partners and look forward to their continued growth on the East Coast."

"Activity at the Port of NY/NJ remains strong. Stabilized demand and strong market fundamentals continue to drive confidence in NJ's industrial market and growth within the Port submarket," added Steve Reedy, Managing Director of CIT Real Estate Finance. "We are pleased to put our commercial real estate expertise and knowledge to work for Bridge Development Partners and look forward to expanding this relationship."

Jeff Milanaik, Principal of Bridge Development Partners, said, "We're excited to begin construction of this Class A property which furthers our continued expansion on the East Coast. New Jersey is a leading destination for businesses coveting centrally located industrial space along the northeast seaboard. This state-of-the-art facility will be located within 4 miles of the Newark Liberty International Airport and the New Jersey Turnpike, and within 6 miles of the NY/NJ Port, with direct access from both I-78 and the Garden State Parkway. We value CIT's market knowledge and ability to timely complete this transaction."

For more news and information visit Blumberg Partners.