KKR has expanded its Phoenix industrial portfolio with the acquisition of a 263,000-square-foot distribution property in Goodyear, Ariz., from developers Provident Real Estate Ventures and Merit Partners.
The global investment firm, which made the acquisition through its core-plus real estate strategy, now owns more than 2 million square feet of industrial assets in the Phoenix MSA.
The sale price was not released but KKR said the state-of-the-art fulfillment center was completed in 2019, has 36-foot clear heights and is located in close proximity to Interstate-10, a major cross-country trucking artery. The property is fully leased by a high-quality tenant on a long-term basis. The tenant was not identified.
Roger Morales, KKR partner & head of commercial real estate acquisitions in the Americas, called the property a high-quality asset that is well-suited to current logistics needs. He said in a prepared statement KKR continues to like the high-growth markets in the Sunbelt.
The firm made its first foray into the Phoenix area in September, when it purchased a 380,000-square-foot distribution property in the Southwest Valley submarket for approximately $43 million. That asset was also built in 2019 and fully leased by a single tenant. It was the third industrial property acquired through KKR’s core-plus real estate strategy, which focuses on longer-hold commercial real estate properties. In July, KKR closed on its first two industrial acquisitions made through the core-plus real estate strategy—two distribution properties in the Chicago and Charlotte, N.C., metro areas with a total of 2.5 million square feet for $260 million.
Across its funds, KKR now owns approximately 32 million square feet of industrial property in major U.S. metropolitan areas. In December, KKR acquired two industrial assets in Dallas and Houston totaling 1.8 million square feet in a deal valued at $171 million, as part of its core-plus real estate strategy. The locations were not disclosed, but the assets were described as state-of-the-art properties that were each fully occupied by a single investment-grade tenant with long-term leases.
KKR has also made recent industrial acquisitions in the Atlanta area. In November, the firm purchased a 1 million-square-foot warehouse located in The Cubes at Bridgeport industrial park in Newnan, Ga., from CRG, that is being leased by Amazon as a fulfillment center.
In September, KKR acquired Atlanta Last-Mile Center, a 205,500-square-foot industrial asset in Atlanta, for $21.7 million from a joint venture of Hardie Real Estate Group and Palatine Capital Partners. The two-story facility located across from Hartsfield-Jackson International Airport is fully leased to two tenants, including Amazon.