BKM Capital Partners Acquires 512K-SF Dallas-Fort Worth Light Industrial Portfolio

Transaction Expand Firm’s Small-Bay Holdings to 1+ Million Square Feet throughout Texas

Newport Beach, CA – August 26, 2025 – BKM Capital Partners, a vertically integrated institutional fund manager specializing in multi-tenant light industrial real estate, has acquired a 3-property portfolio totaling 512,310 square feet. The transaction, involving three properties across Dallas-Fort Worth, advances BKM’s strategy to scale its platform nationally by targeting high-growth, supply-constrained markets with significant value-add potential.

“This isn’t just about entering new markets—it’s about entering the right ones,” said Brian Malliet, BKM’s Founder, CEO and CIO. “This portfolio aligns perfectly with our approach: institutionalize overlooked assets, cater to underserved tenants, and create long-term value.”

The newly acquired portfolio was purchased at a significant discount to replacement cost and offers a 30% mark-to-market opportunity. Average current occupancy for the portfolio stands at 81%, catering to a diverse range of uses including industrial services and supplies, manufacturing, and logistics. Near-term lease rollover profiles further set the stage for immediate upside.

“These weren’t just opportunistic buys, but strategic,” said Brett Turner, Senior Managing Director of Acquisitions & Dispositions. “We’ve been tracking these markets closely. While the broader development pipeline in Texas remains active, new construction at the sub-100,000-square-foot scale is nearly nonexistent. That gives us a unique opportunity to meet growing tenant demand with repositioned, institutional-quality product that simply doesn’t exist elsewhere.”

Previously owned by TA Realty, the properties include the 34,325-square-foot Northgate 22 in Dallas, a 42,506-square-foot facility at 501 106th St. in Arlington to be renamed 360 Industrial, and the Market Street Distribution Center, a five-building, 435,479-square-foot park in Garland. The properties span Northeast Dallas and the Great Southwest, two of the Metroplex’s most supply-constrained submarkets with direct connectivity to the Dallas CBD, DFW International Airport, major labor pools, and rooftops.

BKM has allocated $5.1 million toward capital improvements to elevate curb appeal, address deferred maintenance, and execute its signature repositioning program across all three properties. Enhancements will include roof and HVAC upgrades, drought-tolerant landscaping, new signage, and refreshed paint and parking lots.

BKM will also demise five larger suites into 11 units, reducing the properties’ average unit sizes and rightsizing the share of administrative space at the buildings. These moves are designed to enhance leasing velocity in a segment starved for sub-10,000-square-foot options while meeting the rising expectations of today’s sophisticated users of small-bay industrial space.

The 1.1-billion-square-foot Metro DFW market is the nation’s third largest, fueled by continued demand from reshoring, e-commerce, and supply chain expansion. The submarkets of Northeast Dallas/Garland and Great Southwest/Arlington posted midyear vacancy rates of 7.8% and 6.3%, respectively, with 1.2 million square feet of new development underway between them. That figure represents less than 8% of DFW’s overall 15.4-million-square-foot pipeline, most of which consists of larger projects or pre-leased space.

The assets were acquired through BKM’s joint venture with Whittier Trust. CBRE represented the seller in the transaction. Brett Turner, with support from Charlie Farmer, Director of Acquisitions & Dispositions, handled negotiations on BKM’s behalf.

“We’re fortunate to have strong relationships across these markets—with brokers, lenders, sellers, and our capital partners—who view us as a reliable counterparty and a skilled operator,” said Turner. “That trust gives us access to compelling opportunities where execution and certainty matter.”

Combined with the acquisition of Houston’s West Belt Business Park and a two-property portfolio in Houston’s Southwest submarket, this transaction bring BKM’s Texas footprint to more than 1 million square feet, marking a key milestone in its evolution into a national light industrial platform.