BKM Capital Partners (BKM) acquired Northwest Business Park in Phoenix for $43 million. The acquisition was completed on behalf of BKM Industrial Value Fund III.Â
Located at 2310-2440 West Mission Lane in Phoenix’s Northwest Valley, the property comprises 232,000 square feet in 11 buildings across 17.6 acres. Its 69 units are currently 94% occupied, with an average unit size of approximately 3,365 square feet.
BKM plans to invest approximately $2.6 million toward tenant improvements and leasing commissions, as well as a restricted contingency reserve and targeted upgrades to the roof, HVAC, landscaping, and parking lots over the next few years. The business plan also includes reducing office buildout from approximately 60% to 40%, improving functionality and better aligning the suites with prevailing tenant demand.
Phoenix’s industrial market remains one of the strongest in the nation. In the Northwest Valley submarket specifically, vacancy stands at approximately 7%, compared to 11% metro-wide, and average asking rents exceed broader Phoenix averages.
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