Summary: In an off-market transaction, BKM Capital Partners acquired 4100 Broadway, a 47,058 square foot multi-tenant industrial park located near the Sky Harbor Airport, in the West Central submarket of Phoenix, Arizona. With eight units ranging from 3,700 square feet to 8,400 square feet, the property is currently 64% occupied by five tenants. Overall, the property contains approximately 50% office and 50% industrial.
Value Add Goals: With proper re-configuration of the largest unit (Suite 180) being demised into three separate units, we can transform one hard to lease space into three ready to lease spaces. This asset will outperform its competitive set with a focused effort on getting these units in spec-ready condition, a targeted leasing program and having responsive in-house property management for execution. This asset is well positioned with a prime location just off the I-10 Freeway with frontage on Broadway.
4100 Broadway is located just southeast of the hub of the Phoenix Metro transportation network. The freeway network in the Airport Market Area provides access to major business centers, including Downtown Phoenix, Downtown Tempe, Scottsdale, the Camelback Corridor, and high-tech employers in the southeast Valley Communities of Chandler, Mesa and Gilbert. Proximity to Sky Harbor International Airport gives this market area its name. In addition, the Airport Area is close to high-quality executive and employee residential in the Biltmore/Arcadia, Scottsdale, Ahwatukee Foothills, and Southeast Valley communities.
State Farm Insurance is under construction on a new 2 million square foot office campus on Tempe Town Lake, and over 3,400 high-quality multi-family residential units are under construction or planned. Tempe has the state’s largest concentration of technology firms, and has major operations for US Airways, Chase Bank, Lifelock, Monster Worldwide, KPMG, and First Solar. Proximity to this dynamic and fast growing business center will create strong and increasing demand for properties in the Portfolio.
The Airport Market area surrounding Arizona Corporate Plaza has historically been the strongest and most active for R&D, distribution, small and large manufacturing, and service office employment in the Phoenix metropolitan area. The result is a broad and deep base of complementary employment. There is a large base of potential tenants to draw from, as well as tenants who are located in the Portfolio assets servicing the many larger employers in the area. The strength of this area is evident in the fact that 30% of all of the Phoenix area industrial property is located in the Airport Area submarkets, and 2.98 million people live within a 30 minute commute, representing 69% of the entire Phoenix metro area.