BKM Capital Partners Closes on Third of Three Recent Light Industrial Portfolio Buys that Total Over $138 Mil

February 4, 2019

BKM Capital Partners acquired a two-property portfolio in San Diego for $16.6 mil. For BKM, this purchase is one of three recent light industrial multi-tenant portfolio acquisitions, which encompass more than 769.4k sf for a combined total price of $138.7 mil. Each of these three acquisitions was acquired through BKM Industrial Value Fund II, L.P. 

Del Abeto Commerce Center

 

In this latest transaction, BKM Capital Partners paid $16.6 mil for two properties totaling 99.2k sf. One of the properties is Del Abeto Commerce Center, located at 6352 and 6354 Corte del Abeto in Carlsbad. The other property is Waples Industrial Centre, located at 9540 and 9550 Waples St in Sorrento Mesa. The portfolio is currently 96% occupied with rents that range from 20% to 39% below market rate. BKM plans to update both assets with creative exterior façades, new paint, modern landscaping, and upgraded tenant and monument signage, among other upgrades. 

Mark Avilla at Cushman & Wakefield represented the seller, 3G Properties. BKM represented itself in the transaction. 

BKM also acquired the South Bay Portfolio, which consists of five light industrial multi-tenant buildings totaling 221.7k sf in Fremont, for $49 mil ($221/sf). The properties are located at 48430- 48490 Lakeview Blvd, 48500-48560 Fremont Blvd, 48400 Fremont Blvd, 47745-47787 Fremont Blvd, and 47703-47737 Fremont Blvd. 

South Bay Portfolio

 

Strategically situated off I-880, the assets provide excellent access to East Bay markets to the north, San Jose to the south, and Palo Alto over the Dumbarton Bridge to the west. The property is currently 94% occupied by a diverse range of 13 different tenants with unit sizes ranging from 4.8k sf to 42.5k sf. No single tenant accounts for more than 20% of the property, while rents are also 20% below market value. 

BKM plans to implement new paint, landscape, signage and spec tenant improvements to modernize the property, while also addressing deferred maintenance. Eastdil Secured represented the seller, Stockbridge. BKM represented itself in the transaction. 

And in the third deal, BKM acquired a portfolio of four properties totaling 27 buildings and 448.6k sf across California and Arizona for $73 mil ($163/sf). The purchase includes: Fullerton Business Center, located at 4010-4080 North Palm Street in Fullerton, CA; Ramona Business Center, located at 12901-13177 Ramona Blvd in Irwindale, CA; Mowry Business Center, located at 39975-38995 Cherry St in Newark, California; and Baseline Business Center, located at 230-245 Baseline Rd in Tempe, AZ. 

 Fullerton Business Center


The portfolio is currently 87% occupied with in-place rents 15% below market value. BKM plans to implement a series of exterior and interior cosmetic improvements to the properties including the addition of multi-tone paint, the modernization of monument and tenant signage and landscaping, and addressing any structural deferred maintenance. Mark Detmer, Bo Mills, and Ryan Sitov at JLL represented the seller, Global Logistics Properties. BKM represented itself in the transaction. 

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BKM CAPITAL PARTNERS

 

Headquartered in Newport Beach, California, BKM Capital Partners is a real estate fund manager specializing in the acquisition and improvement of value-add multi-tenant industrial properties in metro areas across the Western U.S. Combining a deep knowledge of this niche industrial product type with in-house capabilities including on-site property management, asset management, and leasing to reposition and institutionalize light industrial assets, the firm continues to build on its proven track record, generating strong results with high levels of transparency and engagement for investors. 

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BKM MANAGEMENT COMPANY

 

BKM Management Company manages a portfolio of 8.2 million square feet of multi-tenant industrial properties for BKM Capital Partner’s private and institutional investors. With a focus on “boots on the ground” execution at the property level, BKM has in-house capabilities for both property management and leasing. The teams at the property level are focused on ensuring the tenants thrive and that the properties managed in the most efficient way.

 

 

 

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