KKR Acquires Papago Distribution Center in Phoenix

Rhea-AI Summary

KKR has acquired a 226,000 square-foot industrial distribution property in the Papago industrial park, Phoenix, Arizona. Built in 2000 and recently renovated, the facility is leased long-term to a leading industrial manufacturer. It offers features like 30-foot clear heights and direct rail access, ensuring efficient logistics. This acquisition expands KKR’s industrial real estate portfolio in Phoenix to approximately two million square feet. The deal was executed through the KKR Real Estate Partners Americas III fund.

Positive

• Acquisition enhances KKR's industrial real estate portfolio to approximately two million square feet in Phoenix.
• Strategically located property with modern features likely to attract strong tenant demand.

Negative

• None.

NEW YORK--(BUSINESS WIRE)-- KKR, a leading global investment firm, today announced that KKR has acquired an approximately 226,000 square-foot, Class A industrial distribution property in the Papago industrial park, located in the highly infill Southwest Valley submarket of Phoenix, Arizona.

The property was built in 2000 and is recently renovated and leased on a long-term basis to a leading industrial building products manufacturer. It features 30-foot clear heights, a 130-foot truck court and direct rail access. Situated just off I-10, the distribution facility provides direct access to downtown Phoenix in approximately 10 minutes and attractive coverage of the entire Phoenix metropolitan statistical area with its close proximity to Highway 202 and I-17.

The purchase grows KKR’s industrial real estate portfolio in Phoenix to approximately two million square feet and was made through the KKR Real Estate Partners Americas III fund.

“Phoenix continues to be a high conviction market for our real estate business and we are pleased grow our presence in the market with the purchase of this well-located and modern industrial distribution property,” said Ben Brudney, a Director in the real estate group at KKR who oversees the firm’s industrial investments in the United States.

Across its funds, KKR owns approximately 34 million square feet of industrial property in strategic locations across major metropolitan areas in the U.S. Since launching a dedicated real estate platform in 2011, KKR has grown real estate assets under management to approximately $33 billion across the U.S., Europe and Asia as of June 30, 2021. KKR’s global real estate team consists of approximately 130 dedicated investment professionals, spanning both the equity and credit business, across 12 offices and nine countries.

About KKR

KKR is a leading global investment firm that offers alternative asset management and capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of The Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211007005200/en/

Miles Radcliffe-Trenner

212-750-8300

media@kkr.com

Source: KKR

FAQ

What property did KKR acquire in Phoenix?

KKR acquired a 226,000 square-foot industrial distribution property in the Papago industrial park, Phoenix.

How does the acquisition impact KKR's real estate portfolio?

The acquisition increases KKR's industrial real estate portfolio in Phoenix to approximately two million square feet.

What are the features of the newly acquired property?

The property includes modern amenities such as 30-foot clear heights, a 130-foot truck court, and direct rail access.

Through which fund did KKR make the acquisition?

KKR made the acquisition through the KKR Real Estate Partners Americas III fund.

When was the industrial property built?

The industrial property was built in 2000 and has been recently renovated.