Summary: In an off-market transaction, BKM Capital Partners acquired Arizona Corporate Plaza, a 124,137 square foot / 11 building multi-tenant industrial park located in Chandler, Arizona. Prior ownership had done little to retain current tenants or to invest in the park’s vacant spaces – making up almost half of the property (it was 53% occupied at time of purchase). The property has a functional design and buildings are well laid out in the park. Additionally, it offers prominent signage to tenants as well as floor-to-ceiling glass façades. It is well-positioned in the market, located just three miles south of the U.S. Highway 60 and three miles west of the 101 Freeway. With BKM’s ownership, the property will see significant value creation through execution of a strategic capital and marketing plan. This, in concert with proactive asset management will trigger improved leasing momentum.
Value Add Goals: Arizona Corporate Plaza was built between 1984 – 1986 and contains 11 buildings and 39 leasable units, many of which are in need of updating and / or retrofit. BKM will invest in a significant improvement program that includes building out and creating move-in ready vacant suites, repairing HVAC, landscape improvements, exterior paint, monument and tenant signage updates and parking lot slurry. With these improvements, we will be able to re-engage the local brokerage community and re-introduce the re-branded asset to the market.
Located just south of Tempe, east of Gilbert, and west of Phoenix, Chandler is one of the fastest-growing cities in Arizona. With more than 245,000 residents and projected job growth of 6.8%, the city attracts a young and talented workforce that supports the area’s set of major employers. Chandler is considered one of the premiere cities for young families, earning 3rd in the Forbes.com 2014 Best Cities for Working Parents ranking.
Chandler’s economic base is primarily supported by Technology companies such as Intel Corporation, the city’s largest employer with nearly 12,000 employees, as well as Freescale Semiconductor, Ebay/PayPal, Microchip Technology, and Verizon Wireless. Other major employers include Bank of America, Chandler School District, Wells Fargo, and Orbital Sciences. The city is also supported by leading industries such as Transport & Material Moving, Technical Sales & Administrative Support, and Managerial & Professional Service.
Chandler is located just south of the Sky Harbor International Airport and is crossed by three of the east Valley’s most prominent thoroughfares: the Loop-101, the Loop-202, and Highway 87. As one of the fastest-growing areas in the state, Chandler has added nearly 100,000 young, educated and affluent citizens in the last 10 years. Chandler’s urban planners are in the process of a major Downtown Development project aimed at creating walkable and unique urban environment. This project has identified seven key areas for redevelopment, which will significantly boost investment in the Historic Downtown Chandler area. Projects will include mixed-use developments, multifamily housing, public areas and more, further bolstering Chandler’s growth rate and attracting even greater economic development.