NEW YORK--(BUSINESS WIRE)--KKR, a leading global investment firm, today announced the acquisition of a five building industrial portfolio (the “Portfolio”) in Phoenix, Arizona totaling approximately 540,000 square feet for a purchase price of $68.0 million.

The Portfolio consists of five shallow bay, last mile warehouses located in a highly infill submarkets less than 10 miles from downtown Phoenix. The portfolio was 100% leased at acquisition and features an average clear height of 25’ and an average vintage of 1988.

The transaction marks KKR’s second industrial real estate acquisition in the Phoenix market in 2021 and expands KKR’s total Phoenix industrial footprint to approximately 2.5 million square feet.

“The favorable demographic trends in Phoenix that we saw in 2019 and 2020 have continued to accelerate in 2021,” said Ben Brudney, a director in the Real Estate group at KKR. “We are excited to further grow our footprint in the market with the addition of this portfolio. Phoenix is an important market for us as we continue to expand in 2021 and beyond.”

KKR is making the investment through its Americas opportunistic equity real estate strategy. Across its funds, KKR owns over 33 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 December 31, 2020 (pro forma to include Global Atlantic’s assets following KKR’s acquisition of Global Atlantic on February 1, 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.

About KKR

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.

KKR Acquires Five Building Industrial Real Estate Portfolio in Phoenix