- BKM Capital Partners
BKM Capital Partners Acquires North Hollywood Light Industrial Park for $25.3M
LOS ANGELES, CA, April 1, 2023 – BKM Capital Partners, a vertically integrated institutional fund manager, has purchased the Valley East Industrial Park in North Hollywood for $25.3 million. Situated on over two acres at 7041 Vineland Ave., the 84,388-square-foot light industrial park will be renamed Backlot NoHo as part of BKM’s massive repositioning plan.
“We continue to acquire value-add small-bay light industrial properties in markets that are strongly positioned to perform over time,” said Brian Malliet, Founder and CEO of BKM. “This market has very limited supply, with vacancy under 2% and continued demand for modern space. This acquisition presents significant opportunities for our experienced team to add value, delivering a cutting-edge asset that will stand out as a leader in the Burbank/North Hollywood light industrial market.”
Located in the heart of the San Fernando Valley, Valley East sits adjacent to the Burbank Airport and is within proximity of the largest concentration of studio production and entertainment operations in the world. The asset was built in 1969 and consists of 36 units across two rear-loading industrial buildings, with an average suite size of 2,411 square feet.
The property offers exceptional mark-to-market potential, given an average WALT of six months and leases that are continuously rolling over. According to Malliet, BKM is “using this to our advantage, by timing the lease expirations with our multi-phase improvement program.”
BKM is implementing a $6.3-million capital improvement plan over the first year of its hold period to improve the asset’s performance, costs and efficiency, while adhering to the firm’s ESG standards and drive new leasing and residual value. The upgrades also call for the reconfiguration and consolidation of some units, to provide larger suites that modern tenants are seeking.
“The majority of North Los Angeles multi-tenant assets are 1960s’ vintage and retain their original exteriors,” stated Brett Turner, Senior Managing Director of Acquisitions and Dispositions at BKM. “Updating Valley East’s exterior will result in a complete rebrand that will allow it to compete at a higher level than currently comparable assets, while reflecting the brand style and standards for which BKM has become known."
Valley East Industrial Park’s centralized Los Angeles location provides immediate access to major transportation routes including I-5, I-405 and CA-170, in addition to same-day access to the logistics hubs at the Ports of Los Angeles and Long Beach.
Mark Detmer at JLL represented the seller, LAIS Equities. BKM represented itself in the transaction.
About BKM Capital Partners
BKM Capital Partners is a proven real estate fund manager and operator focused exclusively on investing in light industrial and multi-use logistics properties in the Western United States. Headquartered in Newport Beach, CA, with over 90 employees in 13 offices, BKM Capital Partners implements a value-add strategy targeting under-managed and under-capitalized assets. The team has invested in over $2.6 billion of small and mid-bay properties with over 3,000 tenants in 70+ properties since 2013. Its approach includes the acquisition, refurbishment, repositioning and active management of these industrial properties in an effort to drive NOI growth and generate a strong IRR and multiple on invested equity. BKM’s foundation is built upon: Focus; Operational Excellence; Technology; and Client Service. Additional information is available at bkmcp.com.