BKM Capital Partners Acquires Kent Valley Light Industrial Portfolio
- BKM Capital Partners
- 2 days ago
- 3 min read
Firm gains 400,000+ square feet of infill space in Seattle’s premier South King County Corridor.
Seattle, WA — July 14, 2026 — BKM Capital Partners, an institutional fund manager and operator specializing in multi-tenant light industrial real estate, has acquired a five-building Metro Seattle industrial portfolio. The assets, located in the market’s premier South King County industrial corridor, were acquired on behalf of BKM Industrial Value Fund III.
Totaling 401,000 square feet across approximately 19 acres of infill industrial space, the portfolio is 84% occupied and includes Southcenter West Business Park, a three-building, 287,000-square-foot campus in Tukwila, WA; Kent Valley Distribution Center III, a 50,450-square-foot facility in Kent, WA; and a 64,000-square-foot facility also in Kent.
Built between 1973 and 1979, the properties feature 24-foot clear heights, 90- to 110-foot truck court depths, wet pipe sprinklers, LED lighting, ample parking, and a mix of dock-high and ground-level loading. The portfolio’s 21 units have a 2.9-year weighted average lease term (WALT), with no more than 26% of net rentable area expiring in any given year.
“The portfolio offers several features that are difficult to replicate in infill locations, like flexible suite sizes, low office finish, and direct access to the region’s core transportation network,” said Brett Turner, Senior Managing Director of Acquisitions and Dispositions with BKM. “Combined with a diversified rent roll and a measured rollover schedule, the acquisition gives us multiple ways to create value without depending on a single lease event or tenant outcome.”
Turner led the acquisition process for BKM, with support from Michael Grossner, Senior Director of Acquisitions and Dispositions. Buzz Ellis, Managing Director with JLL Capital Markets, represented the seller in the transaction.
BKM has allocated approximately $4 million for capital improvements across the portfolio. Planned work includes exterior cosmetic upgrades, fresh paint, landscaping, updated tenant and building signage, parking lot sealing and restriping, targeted roof maintenance, and speculative make-ready improvements designed to support lease-up and improve marketability.
The acquisition further strengthens BKM’s footprint in the Kent Valley, one of the Pacific Northwest’s most important industrial corridors and a central distribution hub for users serving Seattle, Bellevue, Tacoma, the Port of Seattle, the Port of Tacoma, and Seattle-Tacoma International Airport. The assets are located near I-5, I-405, SR-167, Boeing Field, and the BNSF Intermodal facility in Tukwila, with Southcenter West Business Park approximately 3.7 miles from Seattle-Tacoma International Airport and the Kent assets within approximately six miles. The market is further supported by the presence of several corporate occupiers, including Amazon, Boeing, Alaska Airlines, Starbucks, Costco, and Blue Origin.
“This is a market where current conditions and long-term fundamentals present two different stories,” said Brian Malliet, BKM’s Founder, CEO and Chief Investment Officer. “Seattle’s industrial market is still working through several years of supply pressure and shifting tenant demand, which has resulted in a more attractive entry point. At the same time, the Kent Valley remains a land-constrained, infrastructure-rich corridor with deep labor access and sustained demand from a diverse set of users across logistics, distribution, aerospace, manufacturing and other services.”
Competing supply, meanwhile, remains scarce. Just two projects, totaling 887,000 square feet, delivered across greater Seattle in the first quarter of 2026, and with much of the construction pipeline stalled, Cushman & Wakefield expects limited new development to drive absorption of existing vacancy as demand improves. That demand has been strongest at the smaller end of the market, where spaces under 20,000 square feet, the size profile that defines much of the Kent Valley portfolio, remain the most competitive segment.
Learn more about these properties here:
Ridgeline Industrial Park:
Orillia Distribution Center I:
Orillia Distribution Center II:
