BKM Capital Partners has acquired Activity Business Center, a 160.9k sf, five-building multi-tenant light industrial property in the Miramar submarket of San Diego. The industrial complex was sold by Lincoln Property Company in the $28.1 mil ($175/sf) transaction.
Activity Business Center is located at 9235-9265 Activity Rd and 9520-9530 Padgett St, in close proximity to San Diego’s key transportation corridors including the I-15 Fwy, SR-163, SR-52 and the I-805. The complex is currently 92.6% occupied with a diverse range of 38 different tenants. Average unit sizes are approximately 3.7k sf in size.
Lincoln Property had acquired the property in 2015 and then completed a series of cosmetic improvements. BKM intends to capitalize on these upgrades, while creating deeper value by rebranding the asset and further modernizing the property to appeal to the region’s growing quality tenant base. Planned renovations include upgrades to the parking lot, exterior paint, landscaping, monument signage, lobby and the addition of a new outdoor common area.
According to Brian Malliet, CEO and Co-founder of BKM Capital Partners, Miramar is one of the highest performing industrial markets in all of San Diego. “The submarket currently outperforms many of the county’s industrial hubs, with an average industrial occupancy of 97.1%. This acquisition was an opportunity to acquire a high-quality multi-tenant industrial asset in an exceptionally strong market at competitive cost,” added Malliet.
“The property’s diversified tenant base and unit size will limit tenant rollover exposure by a single tenant,” explains Brett Turner, BKM’s Director of Acquisitions. “Based on the tightening Miramar market, we will also be able to quickly lease up remaining vacant space and grow rents over time. The in-place rents at the property are approximately 10-percent below market value, which will allow us to strategically increase NOI over the next few years.”
Cushman and Wakefield represented Lincoln Property Company in the transaction. BKM Capital Partners was not represented.