Industrial Value-Adds in Demand

Industrial value-adds are in demand in Phoenix. Recently BKM Capital Partners, an institutional fund manager whose niche is value-add industrial properties, acquired the 225k SF Koll Cotton Center in Phoenix for $26M. Clarion Partners was the seller. BKM director of acquisitions Brett Turner, who sourced the deal, tells us the company hopes to build a long-term relationship with Clarion, "as they control many assets in our target geography.”

BKM plans interior improvements to the property, including a spec suite program for currently vacant space that will modernize the asset. Koll Cotton is 77% occupied. “By updating the asset, we'll be able to leverage its performance potential, ultimately rolling tenants to a market rate rent," explains BKM CEO Brian Malliet. JLL's Mark Detmer and Bo Mills repped Clarion.

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