BKM Capital Partners and Kayne Anderson Real Estate Acquire Pleasant Hill Industrial Park for $25 Million

Strategic Bay Area Investment Offers Immediate Value-Add Potential in One of Region’s Tightest Industrial Submarkets

Pleasant Hill Industrial Park | Pleasant Hill, CA

PLEASANT HILL, CA — November 17, 2025 — BKM Capital Partners, a vertically integrated institutional fund manager specializing in multi-tenant industrial real estate, and Kayne Anderson Real Estate have acquired Pleasant Hill Industrial Park in Pleasant Hill, California, for $25 million. The transaction presents substantial value-add potential in one of the Bay Area’s most supply-constrained industrial submarkets.

Located at 2420-2495 Estand Way, Pleasant Hill Industrial Park comprises four buildings totaling 104,000 square feet and 16 units, averaging 6,500 square feet apiece. The property, which includes a 35% office component, is 89% leased to 15 tenants across a range of industries, primarily for warehouse and distribution use.

“This acquisition was particularly attractive not only because of the property’s virtually irreplaceable functionality and strategic location, but also due to the unique circumstances surrounding the transaction,” explained Brett Turner, Senior Managing Director of Acquisitions at BKM Capital Partners. “Pleasant Hill was part of a larger, three-million-square-foot portfolio of primarily big box space. The seller approached BKM directly to execute an efficient cash transaction. With limited competitive pressure, we were able to negotiate favorable pricing at a significant discount, while allowing the seller to focus their attention on the broader portfolio sale.”

BKM intends to rebrand and reposition the asset as a best-in-class industrial property, having earmarked approximately $1.7 million for a comprehensive capital improvement initiative. Planned upgrades include exterior paint, enhanced landscaping, new tenant signage, monument signage, roofing overlays, HVAC replacements, and parking lot improvements.

BKM’s regional management office will take over property management to streamline operations and enhance efficiency. The firm also plans to replace the current leasing agent with Cushman & Wakefield, which currently oversees BKM’s leasing efforts in nearby Concord, CA. Given the asset’s weighted average lease term of just 1.2 years, BKM sees an opportunity to roll the entire tenant roster to significantly higher market rates, representing roughly 20% immediate mark-to-market upside.

“Our operational track record in this market gives us the confidence to quickly realize these higher rents, even in an area traditionally dominated by local owners with lower asking rates,” said Brian Malliet, Founder, CEO, and CIO of BKM Capital Partners. “This repositioning also provides strategic flexibility down the road, enabling us to sell the asset individually or pool it with our other regional holdings to optimize liquidity and value.”

Pleasant Hill Industrial Park is strategically located in the Bay Area’s highly constrained I-680 industrial corridor, which serves San Francisco’s affluent suburbs including Walnut Creek, Lafayette, and Pleasanton. The Pleasant Hill submarket specifically boasts a vacancy rate of just 1.2%, the lowest in the corridor, and commands premium rental rates due to limited new industrial supply, dense residential populations, and strong regional demand.

The Bay Area remains a global technology and innovation hub, supported by unprecedented capital investment and well-positioned to dominate emerging sectors such as artificial intelligence and advanced robotics. The region’s industrial fundamentals are further supported by the ongoing $6-billion redevelopment of the former Concord Naval Weapons Station, which will introduce significant new housing, commercial development, and jobs, intensifying the existing supply-demand imbalance.

Eastdil represented the seller, Lowenberg Corp., a privately held Bay Area real estate firm. Brett Turner led the acquisition process for BKM, supported by Michael Grossner, Director of Acquisitions & Dispositions.

Learn more at bkmpleasanthill.com.