KKR Buys Industrial Parks In The Phoenix And Atlanta Markets For $250M

  • KKR & Co. Inc. KKR acquired an industrial park in Phoenix, Arizona, and an industrial warehouse in Atlanta, Georgia, for an aggregate purchase price of approximately $250 million.
  • The purchases were made through KKR Real Estate Partners Americas III, KKR's Americas opportunistic equity real estate fund. 
  • The Arizona property in Phoenix's Southwest Valley industrial submarket consists of three high-quality Class A buildings totaling approximately 1.3 million square feet.
  • The Georgia property is located in Palmetto and has a Class A warehouse totaling approximately 700,000 square feet.
  • KKR owns over 48 million square feet of industrial real estate in major U.S. metropolitan areas.
  • "We are pleased to further expand our industrial footprint in these markets, which continue to benefit from attractive growth fundamentals including positive demographic trends and on-shoring manufacturing trends," said Ben Brudney, a Director in the Real Estate group at KKR who oversees the firm's industrial investments in the U.S.
  • Across its funds in the U.S., KKR has committed or acquired approximately $7.5 billion of logistics assets in the industrial sector since 2018. 
  • KKR believes its industrial supply-demand fundamentals will remain attractive in the medium to long term despite near-term supply headwinds.
  • Also Read: $10B Buyout Goes Bust: Envision Healthcare Backed By KKR Files Bankruptcy
  • Price Action: KKR shares are trading higher by 0.04% at $51.69 premarket on the last check Wednesday.
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