KKR Expands Industrial Real Estate Portfolio in Phoenix With Acquisition of 101 at Van Buren

Rhea-AI Summary

KKR has successfully acquired 101 at Van Buren, a newly built industrial park in Phoenix, for approximately $90 million. This acquisition expands KKR's industrial real estate portfolio in the Phoenix market to nearly 3 million square feet. The park features two Class A buildings with over 600,000 square feet designed for multi-tenant use and boasts state-of-the-art facilities. The investment aligns with KKR's strategy of enhancing its logistics assets, having committed around $7 billion to this sector since 2018.

Positive

• Acquisition of 101 at Van Buren enhances KKR's portfolio, now nearly 3 million square feet in Phoenix.
• Strategically located near major transport nodes, which can boost asset utilization and leasing.
• KKR has committed approximately $7 billion to logistics assets since 2018, reflecting growth potential.

Negative

• None.

NEW YORK--(BUSINESS WIRE)-- KKR, a leading global investment firm, today announced that KKR has acquired 101 at Van Buren, a newly constructed industrial park consisting of two Class A buildings located in Phoenix’s Southwest Valley industrial submarket, from a real estate fund advised by Crow Holdings Capital and Seefried Industrial Properties for a purchase price of approximately $90 million. The acquisition further grows KKR’s portfolio of high-quality industrial real estate across the Phoenix market to nearly three million square feet.

The property is strategically located in close proximity to major transportation nodes, including Interstate Highway 10 (I-10) and Arizona State Route 101 (Loop 101), and has over 600,000 square feet (“SF”) of space with state-of-the-art physical features designed for multi-tenant occupancy. The buildings were delivered in June 2022 and feature 135'+ truck courts and 36 foot clear heights.

“We are excited to add 101 at Van Buren to our portfolio,” said Ben Brudney, a Director in the Real Estate group at KKR who oversees the firm’s industrial investments in the United States. “We continue to invest in high-quality industrial real estate to meet the needs of modern supply chains and are encouraged by the continued momentum in the Phoenix market, including strong leasing velocity.”

The purchases were made through KKR Real Estate Partners Americas III, KKR’s Americas opportunistic equity real estate fund. Across its funds in the U.S., KKR has committed or acquired approximately $7 billion of logistics assets in the industrial sector since 2018 and currently owns over 45 million SF of industrial real estate in major U.S. metropolitan areas.

About KKR

KKR is a leading global investment firm that offers alternative asset management as well as 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 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/20220901005238/en/

Media

For KKR

Miles Radcliffe-Trenner and Emily Cummings

212-750-8300

media@kkr.com

Source: KKR

FAQ

What is the significance of KKR's acquisition of 101 at Van Buren?

The acquisition enhances KKR's industrial real estate portfolio in Phoenix, strategically located to meet modern supply chain needs.

How much did KKR pay for 101 at Van Buren?

KKR acquired 101 at Van Buren for approximately $90 million.

When was the property 101 at Van Buren constructed?

The buildings at 101 at Van Buren were delivered in June 2022.

What is KKR's strategy regarding industrial real estate?

KKR continues to invest in high-quality industrial real estate, aiming to meet the needs of modern supply chains.

How large is KKR's industrial real estate portfolio in the U.S.?

KKR currently owns over 45 million square feet of industrial real estate across major U.S. metropolitan areas.