BKM Capital Partners and Kayne Anderson Real Estate Acquire Atlanta Light Industrial Portfolio

Transaction Marks BKM’s First Investment in Georgia and Continued Expansion into High-Barrier East Coast Markets

ATLANTA, GA—February 10, 2026—BKM Capital Partners and Kayne Anderson Real Estate have acquired a six-property, small-bay industrial portfolio in Atlanta, Georgia. The acquisition represents BKM’s first investment in Georgia and second on the East Coast as it continues to expand beyond its Western U.S. roots following last year’s successful entries into Texas and Florida.

The institutional-quality portfolio is 89% occupied and totals 400,000 square feet across 54 units in eight buildings. The properties are strategically positioned within Atlanta’s best-performing infill submarkets:

Northeast Atlanta:

3400 Corporate Way (60K square feet)

Peachtree Industrial Boulevard (58K square feet)

Young Court (59K square feet)

Northwest Atlanta:

Rubicon Business Center (117K square feet)

Cobb International (52K square feet)

Chattahoochee:

4938 South Atlanta Road (58K square feet)

Built primarily in the 1980s, the properties feature masonry construction, clear heights ranging from 16 to 22 feet, 86 dock-high and 23 grade-level doors, and a diverse tenant base spanning sectors including food and beverage, logistics services, construction, engineering, and manufacturing.

“Atlanta’s small-bay market doesn’t offer many opportunities where you can buy real scale in true infill locations,” said Brett Turner, Senior Managing Director of Acquisitions & Dispositions at BKM. “What stood out here was the combination of strong occupancy, short lease terms, and buildings that are already functional but could clearly benefit from a more institutional approach to leasing and asset management.”

The portfolio carries a weighted average lease term of 2.7 years, positioning BKM to capture meaningful rent growth as leases roll over in the near term. Approximately 65% of the net rentable area is expected to reprice to market, supporting an estimated 18% mark-to-market opportunity.

To execute on that opportunity, BKM has allocated a significant investment toward a targeted capital improvement and repositioning program focused on enhancing curb appeal, improving functionality, and accelerating leasing velocity.

“This is about doing the basics well,” Turner added. “That includes everything from upgrading exteriors, signage and landscaping, to dialing back overbuilt office, and making sure vacant space is truly market ready. In a market like Atlanta, those details matter, especially for small and mid-sized tenants.”

Planned improvements include refreshed building paint, façade enhancements, new building and tenant signage, landscaping upgrades, roof and HVAC replacements, parking lot improvements, speculative tenant improvements, selective suite demising, and a reduction in office buildout of approximately five percent.

JLL Capital Markets represented the sellers, Berkeley Partners and Brookfield Secondaries Group, in the transaction. Turner led the acquisition on behalf of BKM, with support from Charlie Farmer, Director of Acquisitions & Dispositions.

The acquisition marks another milestone in BKM’s national expansion and represents the latest investment completed through its $1.5-billion joint venture with Kayne Anderson Real Estate.

“Our entry into Georgia is a meaningful step in the evolution of our platform,” said Brian Malliet, Founder, CEO, and Chief Investment Officer of BKM Capital Partners. “Atlanta is one of the most sought-after industrial markets in the country, and opportunities like this are increasingly difficult to replicate.”

The properties are positioned along two of Atlanta’s most critical industrial corridors: the I-75, which supports automotive manufacturing, 3PL distribution, and regional supply-chain users, and the I-85 corridor, which benefits from e-commerce and logistics demand tied to the Port of Savannah and Atlanta’s expanding population base.

Turner noted that fundamentals in the portfolio’s submarkets remain particularly compelling. “Chattahoochee is running vacancy around 4.4%, and across metro Atlanta, sub-100,000-square-foot product continues to outperform, with occupancies north of 96% and rents up nearly 30% since 2021. With very little new small-bay supply coming online, that demand has nowhere else to go.”

Atlanta consistently ranks among the nation’s top markets for industrial absorption, serving as the Southeast’s primary logistics and population hub. The metro’s 763.7-million-square-foot industrial market has recorded more than 3.3 million square feet of net absorption through the first three quarters of 2025, while the development pipeline has contracted to approximately 4.1 million square feet—its lowest level since 2014. Small-bay inventory represents just 11.6% of total industrial stock, with vacancy rates well below the metro average and rental rates commanding a premium to bulk distribution space.

With this acquisition, BKM continues to scale its presence in high-growth, supply-constrained industrial markets nationwide, reinforcing its strategy of institutionalizing infill assets that serve the evolving needs of small and mid-sized industrial tenants.