BKM CAPITAL PARTNERS BACK AT IT . . . ADDS 535,979 SQ. FT. TO PORTFOLIO IN $58 MILLION DEAL

Tempe - In its largest single investment in the Valley to date, BKM Capital Partners in Irvine, Calif. (Brian Malliet, co-founder) paid $58 million ($108.21per foot) to purchase 535,979 sq. ft. of industrial-office space within the Tempe Commerce Park located near the northwest corner of Kyrene and Elliot roads in Tempe. The five buildings were sold by Core Fund Tempe Property LLC, a company formed by the Ohio Police & Fire Pension Fund in Columbus, Ohio (John Gallagher, executive dir.). The seller was advised by INVESCO Realty Advisors in Dallas, Tex. The deal was brokered through Mark Detmer, Bo Mills, Dave Seeger and Steve Sayre of JLL in Phoenix.

Maricopa County records show BKM Tempe Commerce 112 LLC acquired the group of buildings with a $40.164 million loan from CIT Bank in Pasadena, Calif. In the past two years, companies formed by BKM Capital Partners have invested $164.56 million ($88.62 per foot blended average) to buy just under 1.857 million sq. ft. of industrial and office space in the Phoenix area. The company, which specializes in purchasing value-add industrial properties in the Western U.S., is looking for additional investment opportunities in the Valley . Here is a summary of the

recent purchase within Tempe Commerce Park: 175,405 sq. ft. of warehouse and office space at 7343 S. Hardy Drive; a 98,052-square-foot office building at 7333 S. Hardy Drive; a 63,720-square-foot office structure at 7340 S. Kyrene Road; a 99,384-square-foot warehouse-office at 7350 S. Kyrene Road, and a 99,418-square-foot office­ warehouse located at 7360 S. Kyrene Road. The properties, which were developed from 1995 to 1997, are fully occupied. Tempe I & 11-0P&F Inc. (Ohio Police & Fire Pension Fund entity) acquired the five buildings for a combined $40.85 million ($76.22 per foot blended average) in two transactions completed in 2000. The OP&F pension fund was advised by RREEF Funds at that time, and the management was later changed to INVESCO. In December 2007, public records show the entity formed by OP&F transferred ownership to Core Fund Tempe Property LLC in a non-arm's length transaction with a recorded sale priceof $55 million ($102.62 per foot). Last month, BREW reported BKM Capital Partners paying $24.136 million ($79 per foot) to acquire 305,524 sq. ft. of light industrial space in Tempe that is comprised of 16 buildings in three projects. Find out more from Brett Turner of BKM Capital Partners at (949) 566-8800. Talk to Kevin Johnson of INVESCO Realty Advisors at (912) 479-1095.

Call the JLL agents at (602) 282-6300.