The portfolio comprises 2,669,265 square feet of space and 493 units in four Western US markets
NEWPORT BEACH, Ca., (Feb. 3, 2020) – BKM Capital Partners, an institutional fund manager with a niche focus on value-add, light industrial multi-tenant investments, has acquired a portfolio containing 11 industrial properties located in Phoenix, Northern California, Southern California, and Portland, Oregon. BKM acquired the properties for a total consideration of $425,365,000.
“Our firm took advantage of this unique opportunity to acquire 11 well-occupied industrial properties, strategically located in some of the most desirable industrial submarkets in the western U.S.,” says BKM Capital Partners Managing Director of Acquisitions, Brett Turner. “By acquiring this portfolio, we are able to achieve geographic diversification and scale in markets where we continue to see opportunities for value creation on behalf of our investors.”
BKM acquired 8 of the properties through BKM Industrial Value Fund II and 3 of the properties in partnership with the Canyon Catalyst Fund, Canyon Partners’ real estate emerging manager program managed on behalf of the California Public Employees’ Retirement System.
The portfolio comprises 2,669,265 square feet of space, 493 units and is nearly 90% occupied.
“As we continue to focus on acquiring well-positioned properties in strong growth markets, we are also ensuring that each property within the portfolio fits nicely within our niche investment strategy,” says Barbara Rea, Chief Operating Officer of BKM Capital Partners. “That strategy is based on enhancing value through substantial capital improvements, strategic interior-unit sizing, and cosmetic improvements to deliver a higher-end industrial product for today’s new high-end manufacturing and warehousing users.”
The firm’s newly acquired properties include:
$157.5 MILLION PHOENIX PORTFOLIO
“The Phoenix industrial market is on the upswing and has a considerable amount of runway for growth,” says Turner. “Absorption is rising while vacancy rates are decreasing, providing ideal fundamentals for our firm to add these properties to our portfolio.”
The properties in the newly acquired Phoenix portfolio include:
Magnolia – a 35,385 square-foot building located at 2655 Magnolia Street in Phoenix, Arizona
Hohokam 10E – an 82-unit multi-tenant industrial property located along South 48th Street, 12th Street, and South Park Lane in Tempe, Arizona
Broadwood – a four-building, 34-unit multi-tenant industrial property located at 2450-2452 West Broadway Road in Mesa, Arizona.
Broadway 101 Commerce Park – a 55-unit multi-tenant industrial property located at West Broadway Road, Mesa, Arizona.
$124.2 MILLION NORTHERN CALIFORNIA PORTFOLIO
“Space in Northern California is highly sought after by industrial users due to the market’s booming economy and ability to attract synergistic companies,” says Turner. “The assets we acquired within this region are all well located in solid industrial submarkets with strong distribution infrastructure.”
The properties in the Northern California portfolio are:
Bradshaw – a 33-unit multi-tenant asset at 9828, 9912, 9940, and 9960 Business Park Drive, Sacramento, California
Horn Rd. – a 48-unit multi-tenant industrial asset at 9901-9981 Horn Road, Sacramento, California
Concord Business Park – a 27-unit multi-tenant industrial asset at 5600, 5650, 5700, and 5750 Imhoff Drive, and 1590 Solano Way, Concord, California.
Sierra Trinity Business Park – a 53-unit multi-tenant industrial asset at 6701 Sierra Court, Dublin, California.
$101.3 MILLION SOUTHERN CALIFORNIA PORTFOLIO
“Orange County and Northern San Diego County are truly hot markets for industrial occupiers seeking space within reasonable distance to the L.A. County ports at a discount to the Los Angeles market,” says Turner. “This was a rare opportunity to purchase two sizeable multi-tenant industrial properties in these highly desirable markets.”
The properties in the newly acquired Southern California portfolio include:
Spectrum Centre Business Park – a 73-unit multi-tenant industrial property located at 20918 Bake Parkway, Lake Forest, California.
Vista Tech Center – a 54-unit multi-tenant industrial property located at 1483-1499 Poinsettia Avenue, Vista, California.
$42.4 MILLION BUSINESS PARK IN TIGARD, OREGON
“Portland is a growth market with tremendous potential for industrial users,” says Turner. “Demand is strong for small and mid-range industrial projects, and vacancy rates remain very low, making this acquisition very attractive for our company.”
About BKM Capital Partners
BKM Capital Partners was founded in 2013 by Brian Malliet and Nima Taghavi. Headquartered in Newport Beach, California, BKM Capital Partners is a real estate fund manager specializing in the acquisition and improvement of value-add light industrial multi-tenant properties in metro areas across the Western U.S. Combining a deep knowledge of this niche industrial product type with a vertically-integrated operator platform that includes in-house capabilities to reposition and convert existing assets, enhance property management, incorporate leasing management and institutionalize light industrial properties characterized by fragmented ownership positions. The firm continues to build on its proven track record, generating strong results with high levels of transparency and engagement for investors. Additional information is available at www.bkmcapitalpartners.com.
About Canyon Catalyst Fund
Founded in 1991, Canyon Partners Real Estate LLC® ("Canyon") is the real estate direct investing arm of Canyon Partners, LLC, a global alternative asset manager with over $26 billion in assets under management. The Canyon Catalyst Fund is a discretionary separate account managed by Canyon on behalf of the California Public Employees’ Retirement System that facilitates investment through the identification of real estate emerging managers with niche strategies, a demonstrated track record and strong potential to access unique investment opportunities. Canyon, in its capacity as account manager, sources, selects and manages underlying advisors, while also maintaining oversight of all platform investments.
Canyon Partners Real Estate
Alex Caswell/Lexi Astfalk