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| Tempe Commerce Park, Tempe, AZ |
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| Brian Malliet |
PHOENIX METRO, AZ, June 21, 2016 – BKM
Capital Partners, an institutional fund manager with a niche focus on
value-add, multi-tenant light industrial investments, has acquired Tempe Commerce Park, a 535,976
square-foot, five-building property in
Tempe, Arizona, in a limited marketing transaction for $58 million.
This acquisition, which is BKM Capital
Partners’ tenth acquisition in the Phoenix metro area this year, was acquired
through BKM Industrial Value Fund I L.P., according to Brian Malliet, CEO and Co-Founder of BKM Capital Partners.
“The Tempe submarket continues to
demonstrate strong economic drivers and is currently one of the most dynamic
submarkets in the Phoenix metro,” says Malliet. “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.”
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| Barbara Rea |
Malliet explains that
Tempe Commerce Park was acquired at 30-percent below replacement costs and is
currently 100-percent occupied.
“The asset was originally brought
to market at 85-percent occupancy, and prior to the acquisition, occupancy was
increased to 100-percent,” says Malliet. “This lease-up will drive
distributable cash flow and reduce the cost of debt for the property,
increasing overall yields to our investors.”
“Our ability to source and
acquire these properties below replacement cost is a key to implementing our
strategy of acquiring value-add opportunities, which we can enhance though
capital improvements, ultimately driving up property value over time,” Malliet
adds.
This acquisition brings
BKM Capital Partners’ holdings in the region to just under two million square
feet.
According to BKM Capital
Partners’ Director of Acquisitions, Brett
Turner, Tempe Commerce Park is located in the heart of Tempe within the
“Silicon Desert submarket,” in close proximity to major transit corridors,
including the I-10, with in-place rents well-below market value.
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| Brett Turner |
“The asset’s prime central
location and below-market rents will provide a tremendous opportunity for
long-term growth,” says 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 property was purchased from
Invesco, on behalf of its client, Ohio Police and Fire. Mark
Detmer and Bo Miles at JLL represented the seller in the transaction.
“Invesco’s integrated
approach and proactive management of this institutional quality asset was a
major attraction to us,” adds BKM Capital Partners’ Director of Marketing and
Operations Barbara Rea. “Further,
Invesco was a pleasure to work with. The
team’s attention to detail and ability to move quickly contributed to a
seamless transaction, and we look forward to working with them on future
transactions.”
For a complete copy of the company’s news release,
please contact:
Lexi Astfalk/Jenn Quader
Brower, Miller & Cole
(949) 955-7940
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