KKR Fund Acquires Industrial Warehouses in Phoenix, Atlanta Markets

Article originally posted on CoStar on June 5, 2023

Global investment firm KKR has acquired $250 million of industrial properties through its KKR Real Estate Partners Americas III fund.

The acquisition signals that KKR is weighing more of its opportunistic real estate investments to stronger performing property sectors.

KKR Real Estate Partners Americas III is the third private real estate fund managed by KKR. The $4 billion fund targets investments in diversified real estate assets primarily in the United States.

“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 onshoring manufacturing trends,” Ben Brudney, a director in the real estate group at KKR, said in a statement. Brudney oversees the firm’s industrial investments in the U.S.

“We are seeing resilient demand for high quality, well located industrial product and we believe despite near-term supply headwinds, industrial supply-demand fundamentals will remain attractive in the medium to long term,” Brudney added.

The fund this past month acquired an industrial park in the Phoenix market and an industrial warehouse in the Atlanta market in in two separate transactions from two different sellers.

The Arizona property GO 99 South in Tolleson is a newly delivered property of three buildings totaling approximately 1.3 million square feet. KKR acquired the property from George Oliver for approximately $160 million, according to a report of MarketScreener.

KKR would not confirm the details.

In Georgia, KKR acquired the Palmetto Distribution Center at 7965 Bowen Road in Palmetto, Georgia, according to CoStar data. The property is a newly constructed Class A warehouse totaling approximately 686,000 square feet.