Continuing its strategy of finding value-add multi-tenant light industrial investments, Newport Beach-based investment fund manager BKM Capital Partners has scooped up a 302K SF industrial business park in Burbank for $84.75M.
BKM acquired the Backlot Burbank, a 12-building industrial campus at 4100-4210 West Vanowen Place, 2303-2333 North Valley St. and 4400-4510 West Vanowen St. from a JV of Shubin Nadal Associates and Penwood Real Estate Investment Management.
CBRE's Darla Longo, Barbara Perrier, Dave Harding and Greg Geraci represented the seller.
“We continue to acquire value-add multi-tenant industrial properties in markets that are strongly positioned to perform over time,” BKM Capital Partner’s CEO and co-founder Brian Malliet said in a news release.
“Burbank has a very limited industrial supply, and is the entertainment production epicenter for broadcasting and radio. It is home to major entertainment powerhouses including Warner Bros and Walt Disney,” he said.
In March, the company spent $28.1M for the 161K SF Activity Business Center, a five-building multi-tenant light industrial property in the Miramar submarket of San Diego.
The company said in May that its BKM Industrial Value Fund II is on track to reach its target of $300M raised by the end of this summer.
The recent Burbank purchase fits perfectly in the company's industrial acquisition strategy, Malliet said.
The industrial campus is 100% leased to 16 tenants with unit sizes ranging from 6K to 100K SF. The average unit square footage is 18K. Tenants' rents are 22% below market.
“The fact that the asset is fully-leased will provide immediate stabilized cash flow, allowing us to simultaneously enhance value for investors through our comprehensive value-add approach,” Malliet said.
Malliet said BKM plans a capital improvements project on the property that includes new roofs, paint, signage and other upgrades.