Invesco Sells Five-Building Industrial Asset to BKM Capital Partners

By Alex Girda

Phoenix– Institutional fund manager BKM Capital Partners recently added a five-building industrial campus to its portfolio. BKM paid seller Invesco roughly $58 million through subsidiary BKM Industrial Value Fund I for Tempe Commerce Park. This is the new owner’s tenth acquisition in the Phoenix MSA. JLL representatives Mark Detmer and Bo Miles worked on behalf of the seller during the transaction.

Tempe Commerce Park

Located in the proximity of Phoenix Sky Harbor Airport and offering access to important transportation lines such as the I-10 and Loop 101, the five buildings acquired by BKM total 535,976 square feet of space. Currently operating at 100 percent occupancy, the assets bring the company’s light industrial portfolio to roughly two million square feet of space.

According to BKM CEO & Co-Founder Brian Malliet, the properties were purchased at roughly 30 percent below replacement costs. Having reached full lease-out just before the acquisition was finalized, the assets will “drive distributable cash flow and reduce the cost of debt for the property, increasing overall yields to our investors.”

Part of what has become known as the “Silicon Desert” submarket in the heart of Tempe, the campus offers further opportunity for growth. Low rents and strengthening area fundamentals will allow the new owner to monetize the assets as the current leasing agreements roll.

Image courtesy of BKM Capital Partners