BKM Capital Partners and Kayne Anderson Real Estate Acquire Multi-Tenant Light Industrial Portfolio in Orlando, FL

Firm Advances National Expansion, Adding Nearly 500,000 SF of Infill Space in High-Growth Southeast Market

Orlando, FL – June 10, 2025 – BKM Capital Partners, a vertically integrated institutional fund manager specializing in multi-tenant light industrial real estate, and Kayne Anderson Real Estate, the real estate investment arm of Kayne Anderson have acquired a five-property portfolio in Orlando, FL. The transaction marks one of the largest light industrial portfolio trades in the Orlando metro in recent years and represents the continued expansion of BKM’s national footprint.

The portfolio spans 489,891 square feet in 45 suites across nine buildings within Orlando’s 33rd Street/McLeod industrial submarket. Covering more than 25 acres within the land-constrained market, the properties offer irreplaceable infill positioning just minutes from Interstate 4, Florida’s Turnpike, Downtown Orlando, and major tourist destinations.

“This acquisition checks every box in terms of BKM’s strategy,” said Brett Turner, Senior Managing Director of Acquisitions and Dispositions at BKM. “The properties offer strong mark-to-market upside, low vacancy, and highly functional space. With great locations in a high-growth market with near-zero new supply, this portfolio offers stable in-place income and significant value creation opportunity.”

Cushman & Wakefield’s Mike Davis, Executive Vice Chair, and Rick Colon, Senior Director,  represented the seller in the transaction, while Turner led BKM’s in-house acquisitions team.

BKM will rebrand the portfolio under the name “Gridline Orlando.” They include:

• Gridline | West Yards: Four buildings totaling 212,463 square feet at 4215-4225 SW 34th St., 4187-4213 34th St., and 4210 and 4240-4288 LB McLeod Rd. 

• Gridline | 34th Core: A 66,000-square-foot facility at 4101-4111 34th St.

• Gridline | Axis Point: A 41,784-square-foot asset at 3827-3843 St. Valentine Way

• Gridline | South Row: Two buildings totaling 89,004 square feet at 4388-4428 and 4492-4498 SW 36th St.

• Gridline | Terminal 46: An 80,640-square-foot property at 4601 SW 34th St.

Constructed between 1980 and 1986, the properties have collectively maintained an average occupancy of 98% over the past four years. Their highly functional layouts, featuring average unit sizes of about 18,800 square feet and clear heights of 20 to 22 feet, cater to Orlando’s robust small to mid-sized tenant base.

BKM and Kayne Anderson Real Estate intends to leverage the portfolio’s 2.5-year WALTs to capitalize on a 33% mark-to-market rent increase across 75% of the space as leases roll over. The 33rd Street/McLeod submarket has led the broader Orlando industrial market in rental rate growth, with rents rising 49% over the past five years, compared to 35% for the metro overall.

As party of its strategy, the joint venture plans to invest significantly in capital improvements, allocating $7.4 million toward enhancements such as fresh paint and signage, water-efficient landscaping, and infrastructure upgrades like HVAC and roof replacements. The firm will also reconfigure four larger units to create nine smaller suites of 10,000 to 15,000 square feet to better align with current demand trends.

“This is another milestone in our continued expansion beyond our original Western U.S. footprint,” said Brian Malliet, BKM’s Founder, CEO, and Chief Investment Officer. “Orlando exemplifies the type of high-growth, supply-constrained market we’re seeking to target nationally, and we plan to build on that momentum as compelling opportunities arise.”

The 33rd Street Industrial submarket has recorded no new deliveries since mid-2022 and currently has no projects under construction. With vacancy for space under 100,000 square feet at just 3.2%, tenant demand is outpacing supply, particularly for smaller units.

Orlando’s industrial market benefits from one of the strongest demographic and economic growth trajectories in the U.S. The region has seen 20% GDP growth and 5.4% population growth since 2020, driven by healthcare, defense, manufacturing, and the tourism sector. The area’s robust employment base, including major employers like Lockheed Martin and AdventHealth, along with its proximity to Universal Studios’ new $11.5-billion Epic Universe theme park, continue to fuel economic activity and infrastructure investment.