BKM Capital Partners is continuing its buying spree in the Puget Sound region, with the purchase of the West Valley Business Park in Kent.
The firm bought the light industrial park for $30.45M in an off-market transaction with the seller, Entera Properties. Both parties represented themselves in the transaction. The light-industrial, multi-tenant 206K SF business park includes 179 units in 19 buildings.
BKM has been tracking this property and communicating with its ownership for years, the company said.
The business park, which was constructed in 1982, is 92% leased to 164 tenants. The current rents are well below market. BKM plans to invest $1.2M in capital improvements to renovate the properties, which will bring the asking rents up to market value.
BKM also recently acquired the 133,595 SF, eight-building Federal Way Industrial Portfolio. The company has recently surpassed $1B of assets under management.
Kent Valley is a popular area for warehouse and light industrial firms. According to a Colliers report, 600K SF of warehouse space was recently delivered to the Kent Valley submarket, yet the vacancy rate remains at 4%.
Many commercial, warehouse and light industrial properties have recently changed hands in the submarket, including Andover Park East in Tukwila, the Allied Building in South Kent, The Pacific West Business Center and the The White River Corporate Park.