|
|
3/20/26
|
BKM Capital Partners has acquired Northwest Business Park, a 232k sf, multi-tenant light industrial property in Phoenix, for $43 mil ($185/sf). The acquisition was completed on behalf of BKM Industrial Value Fund III.
Located at 2310-2440 West Mission Lane in Phoenix’s Northwest Valley, the property consists of 11 buildings across 17.6 acres. Its 69 units are currently 94% occupied, with an average unit size of approximately 3.4k sf. The asset features contemporary finishes, extensive glass lines, frontage along Dunlap Ave, efficient loading areas, and direct access to I-17, Loop 101, and SR 51, positioning it within one of Phoenix’s most accessible and amenity-rich industrial corridors.
BKM plans to invest approximately $2.6 mil 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. The strategy centers on proactive leasing and institutional asset management rather than heavy repositioning.
“This is a true infill asset in a submarket where fundamentals continue to outperform the broader metro,” said Brett Turner, Senior Managing Director of Acquisitions & Dispositions at BKM. “Northwest Valley vacancy sits around 7%, well below the Phoenix average, and multi-tenant product in this size range remains tightly held. At today’s construction costs, replicating this type of campus simply doesn’t pencil, which makes existing, well-located assets like this increasingly difficult to replace."
Phoenix’s industrial market remains one of the strongest in the nation. Net absorption reached 15.9 msf in 2025, the third-highest annual total in market history, while deliveries declined to roughly half of 2024 levels, signaling improving supply discipline. In the Northwest Valley submarket specifically, vacancy stands at approximately 7%, compared to 11% metro-wide, and average asking rents exceed broader Phoenix averages.
With nearly 9.8 msf currently under construction across the metro, more than a quarter of which is pre-leased or build-to-suit, new supply is increasingly tailored to major users rather than speculative multi-tenant product. That dynamic reinforces long-term pricing stability for existing, functional small- and mid-bay campuses in infill locations.
|
|
 Return to the previous page
|
|
|
|
|
Printer-friendly Version
Email an Associate
