BKM Capital Partners Acquires Houston’s West Belt Business Park for $34.1 Million

Multi-Tenant Light Industrial Park Marks Firm’s Entry into Texas Market

Houston, TX—January 9, 2024—BKM Capital Partners, a vertically integrated institutional fund manager specializing in multi-tenant light industrial properties, has announced its acquisition of the West Belt Business Park in Houston, Texas for $34.1 million. The 260,887-square-foot industrial park marks the firm’s first acquisition in Texas, extending BKM’s geographic reach to seven states across the Western U.S.

Located at 10611-10641 Harwin Drive in Southwest Houston, West Belt Business Park comprises five buildings with 30 tenant spaces ranging from 770 to 23,000 square feet. Fully leased to a diverse tenant base across sectors such as home maintenance, logistics, and technology, the property supports a variety of local and regional businesses and remains an integral aspect of local distribution networks.

“Our selective acquisition strategy is key to our success, and West Belt Business Park met our criteria on multiple fronts,” said Brett Turner, BKM’s Senior Managing Director, Acquisitions & Dispositions. “This property offered a rare opportunity to acquire prime light industrial space in a strong market at a 41% discount to replacement cost. With its excellent location and significant potential for aesthetic and operational enhancements, we recognized the immediate value this asset could bring to our portfolio, making it the perfect entrance into the Texas industrial market.”

Leveraging an average tenant lease term of 2.9 years, BKM aims to address an 18% gap in market rents through a strategic $3.3-million capital improvement plan, including enhancements to roofing, architecture, parking areas, landscaping, signage, and tenant improvements. Of that, $2.7 million will be allocated to elevate the property’s exterior appeal.

“West Belt Business Park offers a unique chance to bring BKM’s industry-leading design and management expertise into the Houston market,” commented Brian Malliet, BKM’s Founder, Chief Executive Officer, and Chief Investment Officer. “We see this as more than an acquisition; it’s the foundation of our Texas presence. This park will stand out among the rest in terms of quality and tenant appeal, setting a high standard in the market and creating a platform for BKM’s future growth in the region.”

Positioned adjacent to Beltway 8 and within close proximity to Highway 69 and the 610 Loop, West Belt Business Park benefits from strong connectivity and an ideal location in Southwest Houston’s industrial corridor. Houston’s industrial fundamentals remain robust, with high occupancy rates, steady demand, and resilient absorption figures supporting long-term growth in the market.

JLL’s Charlie Strauss, Lance Young, and Clay Anderson represented the seller in this transaction, while BKM represented itself.