KKR Buys Phoenix Industrial Property

The company acquired the distribution building through its REPA III fund.

Papago Distribution Center at 1010 N. 47th Ave
Papago Distribution Center 1010 N. 47th Ave. Image courtesy of CenterSquare and CapRock

Global investment company KKR has purchased a Class A industrial distribution building within the Papago industrial park in the Southwest Valley submarket of Phoenix. The acquisition was made through the company’s KKR Real Estate Partners Americas III fund.

According to CommercialEdge data, the last owner was CapRock Partners, which purchased the building back in July of 2019 from Clarion Partners.


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The property comprises 226,000 square feet and was built in 2000. The building was recently renovated and leased long-term to a leading industrial building products manufacturer. According to CommercialEdge, that company is listed as Updike Distribution Logistics.

Located at 1010 N. 47th Ave., the asset is situated nearby interstates 10 and 17, Highway 202 and provides convenient access to downtown Phoenix. Features include 30-foot clear heights, direct rail access and a 130-foot truck court. The property is also located in an Opportunity Zone, according to CommercialEdge, and features 52- by 40-foot column spacing, sky lights, ESFR fire sprinklers and 161 parking spaces.

KKR Making Moves

This purchase brings KKR’s Phoenix industrial portfolio to more than 2 million square feet. The firm has been busy this year, making several investments within different metros and across various property types.

Last month, the company purchased a stake in a major life science project in Boston, currently being developed by a joint venture between WS Development and the Public Sector Pension Investment Board. The firm also formed a joint venture with Cornerstone Cos. Inc. to acquire and develop health-care properties across the U.S. Earlier in September, KKR agreed to sell Riata Corporate Park, an eight-building campus in Austin, Texas.

Previous investments in the metro area include a five-building portfolio that was previously owned by Lincoln Property Co., as well as the acquisition of a 263,000-square-foot distribution center in Goodyear, Ariz.

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