Global investment firm KKR is continuing its investment in industrial space in Phoenix, Arizona, acquiring a five-building, 540,000-square-foot portfolio for $68 million.
The portfolio consists of five shallow-bay, last-mile warehouses located ininfill submarkets less than 10 miles from downtown Phoenix. The portfolio was 100% leased at acquisition and features an average clear height of 25 feet. 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.
Since launching a dedicated real estate platform in 2011, KKR has grown its real estate assets under management to approximately $28 billion across the U.S., Europe and Asia Pacific as of December 31, 2020.