BKM Capital Partners has closed its debut institutional fund, BKM Industrial Value Fund I, L.P., with $105 mil in equity commitments and $300 mil in buying power. The fund’s commitments come from both institutional investors as well as a small pool of high net worth investors.
“We took an approach that is different than other first time funds,” says Brian Malliet, CEO and Co-Founder of BKM Capital Partners and Nima Taghavi, Executive Chairman of BKM Capital Partners. “Rather than immediately pursuing institutional capital after launching our business, we invested our own capital to build out a real organization.”
According to Malliet, BKM recruited and hired a highly experienced management team with a proven track record in operating in an institutional grade real estate investment fund business. The firm also raised a friends and family round in order to acquire close to $100 mil in seed assets.
To date, BKM has acquired more than $150 mil in assets for the fund (this includes four assets currently in escrow) throughout Las Vegas, Phoenix and Portland. The fund will continue to target multi-tenant industrial properties throughout the Western U.S., with a focus on markets such as Washington, Oregon and California.
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 efficiently investing the commitments. 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.
BKM’s founders attracted a deeply accomplished group to join the firm’s board of advisors, 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; as well as Nima Taghavi, Executive Chairman of the Board and Co-Founder of BKM Capital Partners.