BKM Capital Partners and StepStone Real Estate Complete Recapitalization of 748,756 Square-Foot Multi-Tenant Industrial Property in Henderson, Nevada for $154 Million

BKM Capital Partners

Jan 23

Exterior photo of Pacific Business Center in Henderson, NV.

NEWPORT BEACH, Calif., (January 23, 2025) – BKM Capital Partners, a leading real estate investment firm specializing in light industrial and logistics properties, today announced the successful $154 million recapitalization of Pacific Business Center in partnership with StepStone Real Estate (SRE), the real estate arm of StepStone Group (Nasdaq: STEP). The ten-building, Class A industrial project spans 748,813 square feet and is strategically positioned in the highly sought-after Las Vegas submarket.

“The recapitalization of Pacific Business Center represents an exciting milestone for BKM as we execute on our proven strategy of identifying opportunities to create long-term value,” said Brian Malliet, Founder, CEO, and CIO of BKM Capital Partners. “Las Vegas’s dynamic industrial market fundamentals, combined with the asset’s rent growth potential and stable cash flow, provide a strong foundation for success. We’re thrilled to partner with StepStone Real Estate to maximize the value of this investment.”

“We have been bullish on acquisitions over the past two years, consistently acquiring high-quality assets at pricing that remains well below replacement cost,” adds Malliet. “In doing so, we have established ourselves as one of the most active buyers of multi-tenant industrial product in the U.S., while simultaneously creating tremendous value for our owned portfolio, which now spans more than ten million square feet throughout the Western U.S.”

Malliet attributes this success to the firm’s niche strategy - BKM is one of the only institutional fund managers that focuses exclusively on multi-tenant industrial in the Western U.S.

Constructed between 1996-1998, Pacific Business Center is an institutional grade asset that has received significant capital improvements since 2010, which include high quality HVAC and EVAP systems, LED lighting, upgraded office finishes and new exterior paint. Additionally, the asset offers top of the line industrial features such as 24’-28’ clear heights, ESFR sprinkler systems and new TPO roofs.

“This recapitalization expands on our existing partnership with BKM and increases our ownership in an asset and market we view favorably” said John Waters, Partner and Head of Investments at SRE. “BKM has demonstrated their ability to unlock value, and we are thrilled to participate in the next phase of value creation through this GP-led secondary transaction in a high-quality industrial asset” he added.

Pacific Business Center is currently 90 percent occupied with a diverse mix of high-quality tenants. In-place rents are projected to be 30 percent below market rate, giving BKM an opportunity for immediate value creation.

The properties are located at: