BKM Capital Partners Completes $43M Industrial Real Estate Acquisition in Phoenix's Northwest Valley
BKM Capital Partners, a vertically integrated institutional fund manager specializing in multi-tenant light industrial real estate, has acquired Northwest Business Park in Phoenix's Northwest Valley for $43 million, the firm announced March 18, 2026. The acquisition was completed on behalf of BKM Industrial Value Fund III and the property has been renamed Central Valley Industrial Park as part of BKM's rebranding program.
The property, located at 2310–2440 West Mission Lane in Phoenix, comprises 232,000 square feet across 11 buildings and 69 units on 17.6 acres. The average unit size is approximately 3,365 square feet, and the asset was 94% occupied at the time of the announcement. The transaction closed March 19, 2026, at a price of approximately $185 per square foot.
Property Details and Strategic Rationale
The asset features contemporary finishes, extensive glass lines, frontage along Dunlap Avenue, and efficient loading areas. Its location provides direct access to Interstate 17, Loop 101, and State Route 51, positioning it within what BKM describes as one of Phoenix's most accessible industrial corridors.
"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 Capital Partners. "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."
The Northwest Valley submarket's vacancy rate of approximately 7% compares favorably to the Phoenix metro-wide rate of 11%, according to BKM. Average asking rents in the submarket also exceed broader Phoenix averages, according to the firm.
BKM Capital Partners Plans $2.6M in Capital Improvements
BKM Capital Partners plans to invest approximately $2.6 million in capital improvements at Central Valley Industrial Park. Planned expenditures include tenant improvements, leasing commissions, a restricted contingency reserve, and targeted upgrades to the roof, HVAC systems, landscaping, and parking lots. The firm also intends to reduce office buildout within the suites from approximately 60% to 40%, a move it says will improve functionality and better align the units with current tenant demand.
The business plan centers on proactive leasing and institutional asset management rather than heavy repositioning, according to the firm's announcement.
Phoenix Industrial Market Context
The acquisition comes amid strong performance in Phoenix's industrial market. Net absorption reached 15.9 million square feet in 2025, the third-highest annual total in market history, while new deliveries declined to roughly half of 2024 levels, signaling improving supply discipline, according to BKM. Approximately 9.8 million square feet remains under construction across the metro.
"Phoenix continues to benefit from sustained population inflows and rising demand, particularly in advanced manufacturing," said Brian Malliet, Founder, CEO, and Chief Investment Officer of BKM Capital Partners. "As larger national users expand into the market and establish operational ecosystems, that activity supports smaller and mid-sized businesses that require well-located, flexible industrial space. Assets like Northwest Business Park sit directly in that demand path."
About BKM Capital Partners and BKM Industrial Value Fund III
BKM Capital Partners focuses on multi-tenant light industrial real estate and manages assets on behalf of institutional investors through its fund platform. The Central Valley Industrial Park acquisition was made on behalf of BKM Industrial Value Fund III.