ORANGE COUNTY, Calif., (February 16, 2016) – BKM Capital Partners, an institutional fund manager with a niche focus on value-add, multi-tenant industrial investments, has announced the final close of its debut institutional fund, BKM Industrial Value Fund I, L.P., with $105 million in equity commitments.
The fund’s commitments come from both institutional investors as well as a small pool of high net worth investors. “We would like to express our sincere appreciation to all of our investors who made our debut fund possible,” says Brian Malliet, CEO and Co-Founder of BKM Capital Partners.
“We know that closing a first-time fund is a noteworthy accomplishment. When we started our company, only seven percent of all the real estate capital raised went to first time fund managers. The difference for us has been our ability to provide investors with what they value most - a significant track record of creating value and a deep pipeline of new opportunities and assets purchased to seed the fund.”
“We took a different approach, and our strategy paid off,” says Malliet. “Rather than simply starting our company and going out to raise funds, we instead funded a ‘startup’ company with a couple million dollars, raised a friends and family round, and then spent time proving that the niche product opportunity is there, that we can successfully acquire and generate value in that niche, and that it can be scaled.”
BKM has already acquired more than $150 million in assets for the fund (this includes four assets currently in escrow) throughout Las Vegas, Phoenix and Portland that are being property managed in-house through BKM Property Management Company. The BKM Industrial Value Fund I, L.P. has $300 million of buying power that will be targeted for multi-tenant industrial properties throughout the Western U.S. with a focus on markets such as the Washington, Oregon and California.
BKM also put a seasoned execution team in place as well as an impressive board of directors, including former Morgan Stanley CEO John Mack, Jeff Gehl, Managing Director of RCP Advisors, Paul Dolinoy, former Head of Equitable Real Estate National Marketing and Sales Pension Operation, and Nima Taghavi, Chairman and Co-Founder of BKM Capital Partners.
“Our ability to close this fund is based in part on our operator platform, and in part on our deep knowledge and ability within our niche product type. Investors are seeking managers with a laser-focused strategy and the ability to deliver on that,” explains Malliet. “The success we have had thus far is a testament of the hard work of our execution team delivering on our strategy.”
The vehicle is targeting assets that have significant value creation opportunity over the five year fund term. BKM has a deep pipeline of potential opportunities and is focused on investing the commitments as quickly and efficiently as possible. After acquiring these properties, BKM plans to renovate, reposition, and re-tenant each property as needed in order to drive the maximum value for every asset.