BKM Capital Partners has acquired West Valley Business Park, an industrial complex consisting of 179 units in 19 buildings totaling 205.7k sf in Seattle’s Kent Valley submarket. BKM acquired the property, located at 19226 66th Ave, from Entera Properties in an off-market transaction for $30.45 mil, or $148/sf.
“This was a rare opportunity to acquire a premier multi-tenant industrial park at 35% discount to value, located in Seattle’s highly sought-after Kent Valley industrial submarket,” says BKM Capital Partners Managing Director of Acquisitions, Brett Turner. “Even with nearly 600k sf of new warehouse space recently delivered to this submarket, the industrial vacancy rate remains low at only 4%, placing upwards pressure on rents. These fundamentals demonstrate the high level of demand in the market and opportunities to attract new users to the region.”
West Valley Business Park is strategically located south of the intersection of the I-5 and I-405 freeways and just 13.5 miles from Downtown Seattle, with frontage on SR-181, known as West Valley Highway, a key north-south arterial bisecting Kent Valley.
Originally constructed in 1982, West Valley Business Park is 92% leased to 164 tenants. In-place rents are well below market, presenting BKM with an opportunity to implement its value-add strategy and bring rental rates up to market. The firm plans to invest approximately $1.2 mil in capital improvements to renovate and reposition the property.
BKM represented itself in the off-market acquisition. The seller, a private investor, also represented itself. BKM has been active in the Seattle region of late, having recently acquired Federal Way Industrial Portfolio, a two-property portfolio consisting of eight buildings totaling 133.6k sf in Federal Way, WA.