28 October 2016
Reporter: Shirley Fehr Rodriguez
BKM Capital Partners has purchased Andover Executive Park, an eleven-building multi-tenant industrial business park in Kent, Washington, for $19.8 million.
Built in 1974, the asset totals 181,163 square feet and follows the company’s acquisition of Tukwila Commerce Centre.
This transaction is the firm’s 18th purchase for its debut fund. The seller was ScanlanKemperBard.
Brian Malliet, CEO and co-founder of BKM Capital Partners, said: “The Kent industrial submarket is one of the most dynamic in the entire US.”
Malliet added: “Our hyper focus on multi-tenant light industrial product allows us to identify, source, and acquire properties that will ultimately deliver the best yields to our institutional investment partners.”
The property is currently 90 percent let below market value by 10 to 30 percent.
Brett Turner, director of acquisitions at BKM Capital Partners, said: “Based on this niche focus and our deep knowledge of the market, we were able to acquire the Andover Executive Park well below peak prices and replacement cost, providing a significant opportunity for generating a strong return on investment.”
The asset will under a series of capital improvements including roof upgrades, exterior paint and landscaping.
Turner added: “Through these capital improvements, we will be able attract and retain high quality tenants, drive rent growth for the property over time, and add to the long-term value of the asset.”