US fund manager BKM Capital Partners has partnered with an undisclosed institutional investor to acquire the Wier Thirty6 Business Park in Phoenix for $21.6m (€20m) as part of a recapitalisation of the property.
BKM initially acquired the asset in 2018 for $8m when it was known as Diablo Business Center. Since then, the firm said it invested $2m in deferred maintenance, cosmetic upgrades and speculative tenant improvements.
Constructed in 1986, the 104,146sqft property comprises nine freestanding buildings housing 10 fully leased units, each with an average size of 10,415sqft. The property is situated on a 5.8-acre site at 3610-3660 East Wier Avenue and 4633-4645 South 36th Street, within the Airport submarket of Phoenix.
Brett Turner, senior MD of acquisitions and dispositions for BKM, said: “Wier Thirty6 Business Park is a prime example of the enduring strength and stability that small-bay industrial properties offer, especially in highly sought-after infill locations like Phoenix.
“The level of interest this opportunity received from investors underscores the increasing recognition of the asset class’s resilience and its appeal to institutional capital.”
Brian Malliet, BKM’s founder, CEO and CIO, said: “Our property management and leasing teams have executed BKM’s strategy with precision, resulting in a 78% increase in in-place rents and a notable elevation of the asset’s overall profile.
“The industrial market’s performance has exceeded even our optimistic expectations, creating an ideal backdrop for further value creation. I’m confident that our team will continue to enhance the asset’s potential as we move forward.”
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