BKM Case Studies
Experienced Team, Exceptional Results
July 2022
date acquired
153K SF
size
40
number of units
2007
year built
Mesa Ridge Business Park
Why we loved this deal
Strong submarket in a great location. Mesa Ridge Business Park sits adjacent to Falcon Field Airport and Boeing’s 1.35 million square foot manufacturing campus.
This is a highly visible industrial asset in the Phoenix submarket, which is becoming increasingly infill in nature with the continued expansion of master-planned neighborhoods and high-density housing. Favorable migration trends and a business-friendly operating environment have generated employment growth that exceeds the national average by 2.5x.
The asset was well-maintained before purchase. Because the previous ownership was maintenance-intensive, there is less deferred maintenance for BKM, which allows for greater allocation towards value-add cosmetic improvements over the holding period.
Revamped Look
The previous owner held the asset since development, implementing a cashflow operating plan resulting in management under-allocating for cosmetic improvements.
While the asset’s strategic location helped maintain a relatively stable occupancy, the lack of modernization prevented it from reaching its true potential. With an adequate capital budget and proper attention from an experienced operator like BKM, the asset could now be given a revamped modern look and attract high-end industrial tenants in manufacturing, innovation, and last-mile distribution.
July 2022
date acquired
153K SF
size
40
number of units
2007
year built
Mesa Ridge Business Park
Our bread-and-butter has been rough value-add deals, where we reconfigure units to rebrand and reposition the property. Much of this deal was already done, which opened up an opportunity to make more cosmetic improvements including a modern paint scheme, new addressing, drought-tolerant landscaping, and modernized monument signage. These improvements allowed us to attract a more high-end tenant base as leases expired.