NEW YORK--(BUSINESS WIRE)--KKR, a leading global investment firm, today announced the acquisition of a three building industrial portfolio totaling approximately 419,350 square feet located in highly infill locations in Phoenix, Arizona. The Seller was a Joint Venture between PCCP, LLC and Hopewell Development LP.
All three assets were built in 2020 and are located approximately twenty to thirty minutes’ driving distance from Phoenix’s Central Business District. The buildings feature state-of-the-art physical characteristics, including 28’ to 32’ clear heights and offer flexible configurations for both single and multi-tenant occupancy. The newly delivered portfolio is currently in lease-up with a rent roll that is approximately 70% leased at acquisition.
The acquisition expands KKR’s industrial real estate footprint in the greater Phoenix market to nearly 2.6 million square feet.
“Phoenix has been one of the fastest growing major markets in the US over the past several years and we’re very excited to add these high quality assets which are complementary to our footprint in the market,” said Ben Brudney, a Director in the Real Estate group at KKR. “These newly built assets offer us the opportunity to take advantage of strong leasing momentum in the Phoenix market with near term upside through the lease up of the remaining vacancy.”
KKR is making the investment through its Americas opportunistic equity real estate strategy. Across its funds, KKR owns nearly 36 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 its real estate assets under management to approximately $28 billion across the U.S., Europe and Asia Pacific as of March 31, 2021. KKR’s global real estate team consists of approximately 100 dedicated investment professionals, spanning both the equity and credit business, across 11 offices and eight countries.
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.