BKM Capital Partners Recapitalizes Northwest Business Park in Phoenix with TC US Partners for $29M
Newport Beach, California-based BKM Capital Partners completed the recapitalization of Northwest Business Center, an 11-building, multi-tenant industrial business park in Phoenix, AZ for $29 million. The transaction was executed through a joint venture with TC US Partners, a real estate investment manager with a primary focus on dynamic growth markets in the United States.
BKM Capital Partners’ CEO Brian Malliet said, “We’re excited about this partnership and recapitalization with TC US because Northwest Business Park offers the ideal combination of stability, security and potential upside. The property represents an outstanding opportunity with an irreplaceable multi-tenant business park in one of Phoenix’s most desirable submarkets at a price well below replacement cost. Market demand remains strong in Metro Phoenix despite a pandemic-affected economy.”
“We are pleased to partner with BKM, an experienced operator with a proven track record that has demonstrated its ability to generate value through its vertically integrated platform. We are enthusiastic about the potential of the light industrial asset class given its resilience during the pandemic and strong fundamentals into the future. We expect this new partnership to continue delivering attractive opportunities and returns for our investors”, said Daniel Grunberg, co-founder of TC US Partners.
The recently renovated property encompasses 227,603 square feet of space in buildings spread out over 17.67 acres. The asset is located at 2310-2440 W. Mission Lane, 9014-9034 N. 23rd Ave. and 9013-9033 N. 24th Ave.
Northwest Business Park offers an array of suite sizes, configurations and buildout levels that appeal to a wide range of tenants, as evidenced by a tenancy spanning various industries, including logistics support, manufacturing, distribution, and construction businesses. The project boasts modern interior layouts and finishes, efficient loading areas and convenient drive-up surface parking. A recent capital investment in the asset exceeded $2.4 million and included maintenance and improvements to the roofs, HVAC, landscaping, and parking lot.
Located in the heart of Metro Phoenix, the Northwest Business Park delivers easy freeway access, is within walking distance to a future light rail station slated for completion in 2024, and is near an expansive workforce and a wealth of amenities. The property benefits from a frontage location on Dunlap Road, a major east/west arterial street, resulting in excellent street presence, strong building identity and an easily identifiable location.
BKM Capital Partners’ Brett Turner, Managing Director of Acquisitions, said, “Our investment thesis about the Phoenix market has been validated by healthy growth and demand for the light industrial product over the past few years. We recognized there was a tremendous value opportunity in the North Phoenix submarket with Northwest Business Park, the recapitalization of which with TC US aligns with our continued investment strategy.”
BKM continues to own and operate 2.1 million square feet throughout the Phoenix metro area.
About BKM Capital Partners
BKM Capital Partners was founded in 2013 by Brian Malliet. Headquartered in Newport Beach, California, BKM Capital Partners is a real estate fund manager specializing in the acquisition and improvement of value-add, light industrial, multi-tenant properties in metro areas across the Western U.S. BKM Capital Partners combines a deep knowledge of this niche industrial product type with a vertically-integrated operator platform that includes in-house capabilities to reposition and convert existing assets, enhance property management, incorporate leasing management and institutionalize light industrial properties characterized by fragmented ownership positions. The firm continues to build on its proven track record, generating strong results with high levels of transparency and engagement for investors.
About TC US Partners (www.tcusp.com)
Founded in 2016, TC US Partners is a real estate investment manager specializing in enterprise and programmatic ventures with a primary focus on dynamic growth markets in the United States. TC US Partners focuses on platform-level investing, whereby it establishes formal agreements to act as a programmatic capital partner to best-in-class operators, with the objective to expand and/or build an institutional-quality real estate portfolio that can perform across market cycles.