Palmetto Distribution Middle. Picture courtesy of Lee & Associates
World funding agency KKR has acquired two newly constructed properties – an industrial park in Phoenix and a warehouse within the Atlanta market – in separate transactions for about $250 million.
The purchases have been made by KKR Actual Property Companions Americas III, KKR’s Americas’ opportunistic fairness actual property fund. The fund was closed in October 2021 with $4.3 billion devoted to opportunistic actual property investments, primarily in the US. Final Could, KKR mentioned the fund would even be used for ground-up industrial belongings. The corporate’s wholly owned U.S. industrial actual property platform, Alpha Industrial Properties, was at the moment creating 4 initiatives and had 4 extra in growth for a complete of 1.8 million sq. toes in markets together with Atlanta, Dallas, Denver and Orlando, Fla.
Throughout all its funds within the U.S., KKR has dedicated or acquired roughly $7.5 billion of logistics belongings within the industrial sector since 2018 and at the moment owns greater than 48 million sq. toes of business actual property in main U.S. metropolitan areas.
Increasing Footprints
The Arizona property at South 99th Avenue and Buckeye Highway in Tolleson consists of three Class A buildings totaling roughly 1.3 million sq. toes and is situated in Phoenix’s Southwest Valley industrial market. Referred to as Go 99 South, the economic park is located close to main transportation nodes together with Interstate Freeway 10 and Arizona State Route 101. KKR didn’t disclose the vendor.
Different KKR industrial belongings within the Phoenix area together with 101 at Van Buren, a two-building, 633,321-square-foot Class A logistics property in Avondale, Ariz., that the agency acquired in August for practically $92 million from Crow Holdings Capital, in keeping with CommercialEdge.
The roughly 700,000-square-foot Class A warehouse in Georgia is situated in Palmetto, an Atlanta industrial submarket, and is in shut proximity to the CSX Fairburn Intermodal Terminal in Fairburn, Ga., and the Hartsfield-Jackson Atlanta Worldwide Airport. CommercialEdge knowledge states the 56.6-acre property is at 7965 Bowen Highway and was developed by Becknell Industrial. Referred to as the Palmetto Distribution Middle, the constructing was accomplished in 2022. Becknell obtained a $26.1 million mortgage from BMO Harris Financial institution in August 2021 for the constructing, in keeping with CommercialEdge knowledge. The identical supply studies that the property is topic to a 13-year unsubordinated web floor lease held by the Growth Authority of Fulton County by Dec. 31, 2024.
Lee & Associates, which represented Becknell in advertising and marketing the location, acknowledged on the time of the land buy in August 2021 the distribution facility could be a cross-docked constructing with a 40-foot minimal clear top, ample care and on-site trailer parking, ESFR sprinkler methods, LED lighting with movement sensors and enough dock packages.
Ben Brudney, a director in KKR’s actual property group, mentioned in a ready assertion the agency was happy to be increasing its industrial footprint in each markets, which proceed to have engaging development fundamentals together with constructive demographic and onshoring manufacturing traits. Brudney added they’re seeing resilient demand for high-quality, well- situated industrial merchandise they usually consider that regardless of near-term provide headwinds, industrial provide and demand fundamentals will stay engaging within the medium to long run.
