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BKM Capital Partners Acquires SeaTac Industrial Park in Seattle for $29 Million

BKM Capital Partners

Unique, Highly Functional Facility Sits Within High-Demand SeaTac Submarket

Exterior photo of SeaTac Industrial Park, building 1.

Seattle, WA–January 14, 2025–BKM Capital Partners, a vertically integrated institutional fund manager specializing in multi-tenant light industrial properties, has announced its acquisition of SeaTac Industrial Park in SeaTac, Washington, for $29 million. The 129,677-square-foot property sits within one of the tightest and most sought-after industrial markets in the Seattle metro area.

 

“Our ability to secure this transaction off-market speaks to BKM’s reputation and track record in the region,” said Brett Turner, Senior Managing Director of Acquisitions & Dispositions at BKM. “SeaTac Industrial Park is a rare gem, offering cross-dock functionality for small-bay users in a submarket where industrial properties of this caliber are both in high demand and in short supply. With a 42% discount to replacement cost, this acquisition is well-positioned to deliver significant upside for our investors.”

 

SeaTac Industrial Park comprises three concrete tilt-up buildings with 18 units ranging from 1,929 to 32,512 square feet, with office spaces comprising 16% of the total footprint. Located at 18802-19024 13th Place S, the property is 92% leased and offers 14- to 16-foot clear ceiling heights, 45 dock-high doors, and 34 grade-level doors. The facility’s unique cross-dock loading configuration, a rare feature for small-bay properties, further enhances its appeal to last-mile users and logistics tenants.

 

BKM plans to invest nearly $2 million in capital improvements to elevate the property’s appeal and address deferred maintenance. The upgrades will include roofing, landscaping, HVAC systems, parking lot repairs, and updated signage. A key component of the plan involves converting the park’s largest unit from 32,512 square feet into four smaller units between 6,000 and 16,000 square feet, addressing the market demand for smaller spaces and achieving a rental rate premium.

 

“The property offers some of the most functional and well-located small-bay spaces in the market, but after 25 years of institutional ownership, it’s ready for modernization,” adds Turner. “Our value-add strategy is tailored to deliver the operational and aesthetic upgrades that will ensure SeaTac Industrial Park stands out as the best-in-class destination for businesses in the region.”

 

BKM’s strategy includes rolling 95% of the existing tenancy to market rates, correcting a 19% rental rate deficiency. With staggered lease expirations averaging 20% of the net rentable area per year, the firm has a clear path to capturing rental growth while maintaining high occupancy.

 

SeaTac Industrial Park marks another significant milestone in BKM’s mission to create value through targeted acquisitions and operational excellence in the light industrial space. Situated adjacent to SeaTac International Airport and close to the Port of Seattle, the property benefits from convenient access to regional logistics infrastructure and key transportation corridors, including I-5 and SR-99/SR-509.

 

With a vacancy rate of just 5.3% in the six-million-square-foot SeaTac submarket—compared to 6.2% in Kent Valley and 8.1% across the broader Seattle market—the area remains under immense supply pressure. New construction is limited, with less than 400,000 square feet in the pipeline, intensifying the supply-demand imbalance for small-bay industrial properties.


Learn more about the property at bkmseatac.com.

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