BKM Acquires a two-property Multi-Tenant Light Industrial Portfolio in Las Vegas for $23MM
LAS VEGAS, Nevada, June 5, 2018 – BKM Capital Partners, an institutional fund manager with a niche focus on value-add, multi-tenant light industrial investments, has acquired Patrick Mojave Industrial Center, a 192,451 square-foot two-property portfolio in the attractive Airport submarket of Las Vegas, Nevada. The portfolio consists of eight multi-tenant light industrial buildings and was purchased for $23 million.
This is the BKM’s sixth acquisition in the Las Vegas market, bringing the firm’s holdings in the Las Vegas region to 1.2 million square feet. The two-property portfolio acquisition includes:
Patrick Airport Center
Patrick Airport Center encompasses 142,451 square feet and is comprised of six light industrial buildings. The property is currently 94% leased to 41 tenants. The project was developed in multiple stages from 1998-2005 and has outstanding frontage on Patrick Road and a unique business park configuration that provides multiple unit sizes and layouts. Unit sizes range from 1,873-12,800 sf, averaging 3,313 sf. The property provides 54 grade-level roll up doors for loading access to each unit.
Planned improvements include parking lot and exterior building upgrades, new landscaping to increase street-front presence, and interior improvements in vacant units, among others.
Patrick Airport Center is located at 2700-2710 Patrick Lane, 6012-6038 Topaz Street, and 6035-6045 Harrison Drive in Las Vegas, Nevada.
Mojave Airport Center
Comprised of two buildings, Mojave Airport Center encompasses 50,000 square feet of industrial space. The project is currently 91 percent leased to 9 tenants. The project was developed in 1990 and features a distribution-orientation with 14 dock-high loading doors and 2 grade level roll up door servicing the end-cap units. Unit sizes range from 3,000-7,000 sf, averaging 5,000 sf. The project sits on 2.71 acres and has a 42% coverage, which provides strong traffic circulation.
Mojave Airport Center is located at 6255-6285 South Mojave Road in Las Vegas, Nevada.
Both properties are located in the highly desirable Las Vegas Airport industrial submarket, conveniently located near the Las Vegas Strip, Interstate 15 and the I-215 Beltway, less than 2 miles from McCarran International Airport. The properties benefit from a wide variety of convenient retail and service amenities nearby.
“The Las Vegas Airport submarket is one of the most highly sought after industrial regions in all of Nevada,” says Brian Malliet, CEO and Co-Founder of BKM Capital Partners. “With the combination of strong demand drivers and limited competing supply on the horizon, this asset will be well positioned to allow us to maximize returns for our investors over time.”
“Our strategy is to capitalize on the growing demand for institutional quality assets throughout the region,” he says. “We plan to execute our proven operational platform in order to lease up current vacant space, bring existing rents up to market value, and integrate key cosmetic upgrades that will immediately increase NOI.”
According to Brett Turner, Director of Acquisitions at BKM Capital Partners, “We plan to implement a series of capital improvements that will enhance the interior / exterior of the buildings and return office suites back to warehouse space, providing a more modernized look, consistent with current demand.”
The acquisition is aligned with BKM Capital Partners’ overall strategy to acquire properties well below replacement costs in growth markets, then stabilize and reposition the assets to create long-term value for investors, according to Malliet.
The two-property portfolio was purchased from Stockbridge Capital Group.