Our Investment Process
Source, Execute & Create Value
We acquire, adaptively reposition, and actively manage small-bay light industrial business parks.
BKM’s value-add investment strategy targets middle-market properties that have been historically undermanaged with below-market rents and high vacancy that can be acquired at a deep discount to replacement cost and well below peak pricing. BKM then utilizes its on-site leasing, asset management, and property management teams to execute value-add capital improvement programs and lease-up strategies to maximize risk-adjusted returns.
BKM takes pride in its strong personal relationships with the real estate community in our target markets, which allows us to identify opportunities before competitors.
BKM has also invested in BKMIntel, a proprietary business intelligence (BI) tool used for tracking the robust pipeline and comparable sale and lease transactions. The team can see noticeable trends in our markets, foresee upcoming transactions, and improve internal underwriting, all of which better drive future investment decision-making.
Source
Market presence
Longstanding relationships with owners and brokers
Off-market sourcing (two-thirds off market or limited market)
Refurbish & Reposition
BKM standard exterior and interior improvements
Reposition to attract high-quality tenants
Higher class of assets now priced at lower cap rate
Intensive Leasing & Management
Aggressively mark rents to market
Retenant property for improved credit and diversification
Establish as leading property in submarket
Grow NOI
& Cash Flow
As leases roll increase rents and WALT
Enhance yields to investors
30-50% of return is typically derived from cash flow
Institutional Exit
Optionality of exit strategies, single property or portfolio
Institutional demand
Liquid markets
Attractive investments with strong cash flow
Proven Investment Process
Our Value-add Execution
BKM has demonstrated a commitment to continuous improvement and innovation, which has helped position us as a leader in the market. We add value to light industrial real estate through Aggressive Image Rebranding, Redevelopment, and Active Asset Management.
Environmental
Sustainability
BKM Capital Partners is committed to sustainability and has implemented eco-friendly practices at its properties. This includes the installation of solar panels, LED lighting, and other energy-efficient technologies, as well as the implementation of water conservation measures. This has helped to reduce energy costs and decrease our carbon footprint.
Cosmetic
Improvements
BKM implements a comprehensive repositioning plan through a well-orchestrated marketing effort including targeted advertising and incentivizing local leasing agents. BKM makes prudent use of resources to upgrade exterior building appearances, including painting, façade repair and signage. Standardized interior improvements reduce costs through interchangeable schemes and economies of scale.
Physical
Improvements
BKM makes significant physical improvements to its properties, including upgrading roofs, HVAC systems, lighting, and other infrastructure. These improvements help to attract and retain high-quality tenants, improve the overall appearance of the properties, and increase their value.
Operational
Improvements
BKM Capital Partners has implemented best practices for property management, including increasing operational efficiency, reducing costs, and improving tenant satisfaction. By streamlining processes and utilizing technology, the company has been able to achieve higher levels of profitability and maximize returns for investors.
Tenant
Experience
BKM places a strong emphasis on providing a high-quality tenant experience. This includes offering amenities such as outdoor gathering areas and modernized common areas. The company also strongly focuses on communication and responsiveness to tenant needs, which helps foster long-term tenant relationships.
Utilizing
Technology
BKM has embraced technology to improve its operations, including using software to automate tasks and improve data management. This has helped to increase efficiency and reduce errors.
Case Study: West Valley Business Park | Kent, WA
Upon taking ownership of West Valley Business Park, BKM established its second Seattle property management office, allocated its best management personnel and trimmed operating expenses. It also embarked on a strategic cosmetic improvement, rebranding, and leasing program to boost the property’s value and tenant appeal.
Parking Lot
Landscaping
Addressing
Tenant Signage
Modern Paint Scheme
BKM immediately established an on-site presence and increased occupancy levels from 88% to 96% since acquisition, amounting to 75 new leases and 67 renewals.
BKM leveraged its local presence to systematically roll below-market rents, increasing in-place rents by 83% since acquisition.
BKM executed a comprehensive cosmetic improvement plan that included a modernized paint scheme, drought-tolerant landscaping, and enhanced signage.
BKM reconfigured 22 obsolete industrial units and converted 31 dysfunctional office units into functional 1st generation industrial suites which involved demoing back office, adding overhead doors, and reconfiguring the rear parking into loading zones.