Phoenix-area industrial acquisition financed with $40.15M loan

PHOENIX, June 13, 2022 – JLL Capital Markets announced today that it has arranged $40.15 million in acquisition financing for Pecos Commerce Center, a fully leased, six-building, Class A, multi-tenant light industrial park totaling 222,206 square feet in the Phoenix-area community of Mesa, Arizona.

JLL worked on behalf of the borrower, Investcorp, a leading global alternative investment firm, to place the floating-rate acquisition loan, inclusive of a future funding component for accretive leasing capital, with BankUnited. Investcorp will leverage their existing partnership with BKM Capital Partners, a leading real estate fund manager and operator, for the management of this investment.

Completed in 2008, Pecos Commerce Center offers its 43 tenants a 28-foot clear height, average suite size of 4,700 square feet, 22 percent office buildout, ample dock space and an abundance of vehicle parking. The facility has a history of attracting diverse tenants that support the local, regional and national economies.

Pecos Commerce Center spans nearly 18 acres at 7931 E. Pecos Rd. at a highly accessible location near Phoenix’s major thoroughfares, including Loop 202 and less than 2 miles from the Phoenix Gateway-Mesa Airport, which is undergoing an expansion with its SkyBridge Arizona project that will further facilitate trade with Mexico. The property is within the desirable Southeast Valley Industrial submarket, which reported a low vacancy rate of 5.4 percent at the end of the first quarter according to JLL Research.

The JLL Capital Markets team that represented the borrower included Executive Managing Director Michael Tepedino, Senior Managing Director Michael Gigliotti, Director Jason Carlos, and Analyst Jarrod Howard.

“Investcorp continues to acquire highly accessible, quality properties in Phoenix with functional layouts for tenants,” Carlos said. “We are excited to be part of Investcorp’s continued success as they capitalize on tailwinds from strong Phoenix market fundamentals.”

“BankUnited is pleased to have collaborated with JLL Capital Markets to provide financing to Investcorp and to facilitate our client’s growth strategy,” added Ben Stacks, executive vice president and head of commercial real estate at BankUnited.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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Investcorp is a global investment manager, specializing in alternative investments across private equity, real estate, credit, absolute return strategies, GP stakes, infrastructure and insurance asset management. Since their inception in 1982, they have focused on generating attractive returns for their clients while creating long-term value in their investee companies and for their shareholders as a prudent and responsible investor.

Investcorp invests a meaningful portion of their own capital in products they offer to clients, ensuring that their interests are aligned with their stakeholders, including the communities that they operate within, towards driving sustainable value creation. They take pride in partnering with their clients to deliver tailored solutions for their needs, utilizing a disciplined investment process, employing world-class talent and combining the resources of a global institution with an innovative, entrepreneurial approach. In January 2022, Investcorp issued its 2021 Responsible Business Report which outlines its Environmental, Social and Governance (ESG) highlights for 2021 and specific initiatives the firm implemented to meet its goals: www.investcorp.com/esg.

Investcorp has 13 offices across the US, Europe, GCC and Asia, including India, China and Singapore. As of December 31, 2021, Investcorp Group had US $41.2 billion in total AUM, including assets managed by third party managers, and employed approximately 460 people from 46 nationalities globally across its offices. For further information, visit www.investcorp.com and follow us @Investcorp on LinkedIn, Twitter and Instagram.

BKM Capital Partners is a proven real estate fund manager and operator focused exclusively on the acquisition, refurbishment, and operation of light industrial & multi-use logistics assets in the Western United States. Combining a deep knowledge of this niche industrial product type with in-house capabilities including on-site property management, asset management, and leasing to reposition and institutionalize light industrial assets, the firm continues to build on its proven track record, generating strong results with high levels of transparency and engagement for investors. Since its inception in 2013, BKM has successfully acquired more than 14 million square feet of industrial projects valued at more than $2.5 billion. The firm continues to grow its investment management business through strategic joint ventures, institutional investor funds and separate account equity capital. Additional information is available at bkmcapitalpartners.com.

BankUnited, Inc. (NYSE: BKU), with total assets of $36.3 billion at March 31, 2022, is the bank holding company of BankUnited, N.A., a national bank headquartered in Miami Lakes, Florida that provides a full range of banking and related services to individual and corporate customers through banking centers located in the state of Florida and in the New York metropolitan area. BankUnited also offers certain commercial lending and deposit products through national platforms. For additional information, call 1-877-779-2265 or visit www.BankUnited.com. BankUnited can be found on Facebook at facebook.com/BankUnited.official and on Twitter @BankUnited.