BKM Capital Partners Acquires Northwest Business Park in Phoenix for $43 Million

Northwest Valley Asset Offers Disciplined Basis and Near-Term Mark-to-Market Opportunity

Newport Beach, CA — March 18, 2026 — BKM Capital Partners, a vertically integrated institutional fund manager specializing multi-tenant light industrial real estate, has acquired Northwest Business Park in Phoenix for $43 million. The acquisition was completed on behalf of BKM Industrial Value Fund III and has been renamed Central Valley Industrial Park as part of BKM's rebranding program.

Located at 2310–2440 West Mission Lane in Phoenix’s Northwest Valley, the property comprises 232,000 square feet in 11 buildings across 17.6 acres. Its 69 units are currently 94% occupied, with an average unit size of approximately 3,365 square feet. The asset features contemporary finishes, extensive glass lines, frontage along Dunlap Avenue, efficient loading areas, and direct access to I-17, Loop 101, and SR 51, positioning it within one of Phoenix’s most accessible and amenity-rich industrial corridors.

“This is a true infill asset in a submarket where fundamentals continue to outperform the broader metro,” said Brett Turner, Senior Managing Director of Acquisitions & Dispositions at BKM. “Northwest Valley vacancy sits around 7%, well below the Phoenix average, and multi-tenant product in this size range remains tightly held. At today’s construction costs, replicating this type of campus simply doesn’t pencil, which makes existing, well-located assets like this increasingly difficult to replace.”

BKM plans to invest approximately $2.6 million toward tenant improvements and leasing commissions, as well as a restricted contingency reserve and targeted upgrades to the roof, HVAC, landscaping, and parking lots over the next few years. The business plan also includes reducing office buildout from approximately 60% to 40%, improving functionality and better aligning the suites with prevailing tenant demand. The strategy centers on proactive leasing and institutional asset management rather than heavy repositioning.

Phoenix’s industrial market remains one of the strongest in the nation. Net absorption reached 15.9 million square feet in 2025, the third-highest annual total in market history, while deliveries declined to roughly half of 2024 levels, signaling improving supply discipline. In the Northwest Valley submarket specifically, vacancy stands at approximately 7%, compared to 11% metro-wide, and average asking rents exceed broader Phoenix averages.

“Phoenix continues to benefit from sustained population inflows and rising demand, particularly in advanced manufacturing,” said Brian Malliet, Founder, CEO, and Chief Investment Officer of BKM Capital Partners. “As larger national users expand into the market and establish operational ecosystems, that activity supports smaller and mid-sized businesses that require well-located, flexible industrial space. Assets like Northwest Business Park sit directly in that demand path.”

With nearly 9.8 million square feet currently under construction across the metro, more than a quarter of which is pre-leased or build-to-suit, new supply is increasingly tailored to major users rather than speculative multi-tenant product. That dynamic reinforces long-term pricing stability for existing, functional small- and mid-bay campuses in infill locations.