BKM Capital Partners Acquires Hannover Industrial Park in Fremont, CA for $43 Million

Strategic Light Industrial Acquisition Strengthens BKM’s Foothold in the Supply-Constrained Silicon Valley Market

Fremont, CA—June 17, 2025—BKM Capital Partners, a vertically integrated institutional fund manager specializing in multi-tenant light industrial properties, has purchased the Hannover Industrial Park in Fremont, CA for $43 million. The 165,243-square-foot property, acquired in an off-market transaction from an unnamed private seller, is located in Silicon Valley’s high-demand I-880 Corridor.  The asset was acquired on behalf of BKM Industrial Value Fund III, LP.

Located at 4755–4900 Hannover Place and 4377 & 43815 S Grimmer Boulevard, the park consists of six buildings housing nine units with an average size of 18,360 square feet. It features a 14% overall office component as well as a secured 67,000-square-foot paved yard, found in less than 3% of the region’s industrial product. At 74% occupancy, the project presents an opportunity to lease-up about a quarter of the net rentable area and recapture approximately 28% mark-to-market on in-place rents over the hold period.

“Our ability to secure this deal off-market and at a discount to the seller’s original 2023 purchase price speaks to the strength of our sourcing relationships and our status as a preferred buyer for institutional-grade assets,” said Brett Turner, Senior Managing Director of Acquisitions & Dispositions at BKM. “With its strategic location in Silicon Valley, unique yard component, and underutilized leasing potential, Hannover Industrial Park aligns perfectly with our value-add thesis and positions us to deliver strong returns to our investors.”

BKM plans to invest $1.3 million in targeted capital improvements to reposition the property and drive tenant demand, including exterior paint, signage, landscaping upgrades, LED warehouse lighting, and speculative tenant improvements for the three vacant suites. The business plan also includes re-leasing and renewing key tenancy at market rents. With a 3.0-year weighted average lease term, the property offers near-term upside with limited downside exposure.

“This transaction highlights the unique nature of light industrial real estate in supply-constrained markets like Silicon Valley, where new development is virtually impossible and competition for functional space remains fierce,” Turner added. “Hannover Industrial Park not only strengthens our presence in one of the tightest corridors in the country but also deepens our relationship with tenants across multiple BKM assets—an increasingly important advantage as we scale a resilient, performance-driven portfolio in core growth markets.”

Considered the “Hardware Side of the Bay Area,” Fremont is home to more than 900 manufacturing and hardware companies the region and represents a key component of the supply chain servicing Silicon Valley’s software industry. The property’s location within the submarket—which has a sub-6% industrial vacancy and limited new construction—offers exceptional proximity to major logistics and employment hubs, including the nearby Tesla factory, Seagate, Facebook, and Google.

Learn more about Hannover Industrial Park at www.bkmhannover.com.