Phoenix Industrial Park Lands $29M Refi

Northwest Business Park. Image courtesy of BKM Capital Partners

BKM Capital Partners has formed a joint venture with TC US Partners to recapitalize Northwest Business Center, a 227,603-square-foot industrial park in Phoenix, for $29 million.

The asset has been a part of BKM Capital Partners’ portfolio since 2017 when the company acquired it for $17.2 million, according to CommercialEdge data.

Completed in 1985, the multi-tenant business park includes 11 one-story buildings. Recently, BKM implemented a capital investment plan exceeding $2.4 million that focused on rehabilitating HVAC systems, parking structures and landscaping, as well as roof improvements.

Northwest Business Center is located within an Opportunity Zone at 2310-2440 W. Mission Lane, 9014-9034 N. 23rd Ave. and 9013-9033 N. 24th Ave. The property has a parking ratio of 3 spaces per 1,000 square feet.

The property features a wide variety of configurations that reflects in its diverse tenant roster, which spans several industries such as logistics, manufacturing, construction and distribution. Tenants include Springs Window Fashions, Major Medical Supply, Crescent Healthcare and Biltmore Properties, CommercialEdge shows.

The business park provides easy access to Interstate 17, which is less than a mile away, as well as Freeway 51, roughly 6 miles away. Northwest Business Center benefits from a frontage location on Dunlap Road, a major east/west arterial street, and is proximate to an expansive labor pool. Downtown Phoenix is some 11 miles south of the property.

Betting on Phoenix

Valley Metro is currently expanding its light rail system in the Greater Phoenix area; Phase I opened in March 2016, while work on Phase II started in September 2020 and is expected to wrap up in 2024. The Northwest Light Rail Extension Phase II is just one of several major projects reshaping Phoenix.

The second phase will add 1.6 miles to the existing 28 miles of light rail between north Phoenix and Mesa. A future station will be located within walking distance of Northwest Business Center.

Phoenix, a poster child for industrial growth, had some 23.4 million square feet of industrial space under construction as of July, equal to 8.9 percent of completed stock. The Valley of the Sun’s industrial market draws on its key location as a distribution hub, which placed it third among a CommercialEdge ranking of top five markets for industrial construction activity in the U.S.