BKM Capital Partners Acquires Los Angeles South Bay Light Industrial Campus for $95 Million

Firm expands Southern California footprint as it pursues broader Los Angeles tenant demand through strategic capital investment

Carson, CA — June 22, 2026 — BKM Capital Partners, a leading real estate fund manager and operator focused exclusively on small- and mid-bay light industrial properties across the United States, has acquired Carson Industrial Center in Carson, CA for $95 million. The 429,000-square-foot multi-tenant campus sits on more than 20 acres in Los Angeles’ South Bay submarket and was purchased on behalf of BKM Industrial Value Fund III.

The 11-building campus traded at a significant discount to replacement cost, reflecting the repricing that has moved through Southern California industrial over the past two years and the opportunity it has created for investors willing to underwrite the submarket’s long-term fundamentals.

“The repricing in Southern California industrial has created real opportunities to acquire well-located assets at a basis that simply wasn’t available a few years ago,” said Brett Turner, BKM’s Senior Managing Director of Acquisitions & Dispositions. “While we remain selective in this market, Carson Industrial Center aligned with several priorities we’re focused on today. The campus offers scale, functional small- and mid-bay buildings, immediate leasing upside and a basis that allows us to invest meaningful capital to reposition the property well for the next phase of tenant demand.”

Carson Industrial Center offers 20 units with an average unit size of 21,000 square feet. It also features a combined 79 dock-high and grade-level doors, 14- to 21-foot-clear ceiling heights, and parking for 651 vehicles. The property is currently 73% occupied by a tenant mix led by manufacturing, alongside freight logistics, signal and connectivity solutions, luxury handbag distribution, and novelty toy importers. Each of its 11 single-story buildings sits on its own parcel, and five are freestanding with private yards and frontage along Del Amo Boulevard.

BKM has allocated more than $6 million to reposition the property and bring it up to today’s standards, including improvements to second-generation space. The renovation program will reconfigure and upgrade vacant units while also addressing exterior deferred maintenance and introducing new signage and landscaping across the campus. The firm has also renamed the asset to "South Bay Industrial Exchange" as part of the rebranding process.

“Our business plan should make Carson Industrial Center competitive for a much broader pool of tenants, including users from Torrance and the surrounding area who want South Bay access but need space that meets today’s standards,” said Brian Malliet, BKM’s Founder, CEO and Chief Investment Officer. “The campus also has a structural advantage that is rare at this scale: having each building on its own tax parcel gives us meaningful flexibility as we execute, including the ability to sell individual buildings to owner-users over time if market conditions support it.”

Brett Turner, with support from Michael Grossner, Senior Director of Acquisitions & Dispositions, led BKM team negotiating the transaction. Cushman & Wakefield represented the seller, a global investment advisor.

Located at the southeast corner of Del Amo Boulevard and Tillman Avenue, Carson Industrial Center provides direct access to I-405, I-710, I-91 and I-110 within three miles, as well as proximity to a population of more than 4.5 million people within a 30-minute drive. The property sits roughly 20 minutes from the Ports of Los Angeles and Long Beach, the largest port complex in the Western Hemisphere. As the point of entry for roughly 31% of U.S. container trade, it generates persistent structural demand for South Bay industrial space from importers, third-party logistics providers and last-mile distributors.

The South Bay is the largest industrial submarket in Los Angeles at 200 million square feet, with a direct vacancy rate of 5.8% and less than 400,000 square feet currently under construction.

The timing also aligns with improving conditions in the broader market. After several quarters of negative net absorption, leasing activity across Greater Los Angeles reached its highest quarterly velocity in four years in 2025, with South Bay leading all submarkets. With vacancy stabilizing and new supply remaining limited, the market is entering a recovery cycle that should support BKM’s repositioning timeline and leasing assumptions at Carson Industrial Center.