BKM Capital Partners Completes $750M of Transactions Through Q3 2024
Firm expands in key markets, on track to end year with over $1 billion in total deals.
Newport Beach, CA—October 8, 2024—BKM Capital Partners, a vertically integrated institutional fund manager, has closed on more than $750 million worth of transactions during the first three quarters of 2024, strengthening both its balance sheet and national footprint. In a market characterized by heightened financing challenges and economic uncertainty, BKM’s strategic acquisitions and dispositions demonstrate the firm’s ability to identify and capture high-value, opportunistic investments in an inefficient market within the multi-tenant light industrial sector.
“In a period where others have been hesitant, our team’s deep market expertise and disciplined strategy have allowed us to seize opportunities that others may overlook or are not aware of,” says Brian Malliet, BKM’s Founder, Chief Executive Officer, and Chief Investment Officer. “Our ability to secure assets with significant value-add potential at substantial discount to replacement costs is a testament to our rigorous approach. The success we’ve achieved this year underscores our commitment to executing a value-driven strategy, which captured cumulative rent growth of 50-90% over the last 36 months, proving that even in challenging market conditions, we can deliver strong results for our investors.”
In addition to the transactions completed thus far, BKM expects to close on an additional $650M by year-end.
2024 Transaction Activity
BKM embarked on several transactions this year that allowed the company to strategically realign its portfolio while continuing its growth trajectory. The transactions were conducted either on behalf of BKM Industrial Value Fund III or in partnership with institutional partners, including one new investor.
So far in 2024, BKM has completed 13 acquisitions worth $385 million, spanning key markets in Arizona, California, Colorado, Nevada, and Oregon. The transactions highlight BKM’s continued focus on markets with strong demand fundamentals and limited new supply. Aggregating more than 1.9 million square feet, the properties acquired include:
Baseline Business Park (100,375 SF) and Ash Business Center (89,728 SF) in Phoenix, AZ
North Cabot Industrial Park (51,038 SF) in Hayward, CA
Cherry Commerce Center (97,799 SF) in Newark, CA
Canyon Industrial Center (198,728 SF) and Faraday Industrial Park (99,348 SF) in San Diego, CA
Havana 37 Business Center (150,245 SF) in Denver, CO
Patrick & Mojave Airport Center (192,463 SF) and Escondido Business Park (153,368 SF) in Las Vegas, NV
Airport Way Corporate Park (140,693 SF), Columbia Commerce Center (375,429 SF), and Tigard Business Park (259,124 SF) in Portland, OR
Also this year, BKM closed on $306.5 million in dispositions involving six facilities in California, three assets in Arizona, two assets in Colorado, two in Nevada, and one in Oregon.
“BKM’s 2024 acquisitions are a clear demonstration of our ability to navigate a challenging market by focusing on assets with untapped value,” comments Brett Turner, BKM’s Senior Managing Director, Acquisitions & Dispositions. “Our established presence and proven track record in key markets have positioned us as a trusted and reliable buyer, which is why many opportunities are brought directly to us. This advantage allows us to secure deals at favorable terms, capitalizing on the inefficient market dislocations where others may struggle.”
“The properties we’ve acquired this year all present significant opportunities for value creation, whether through improved management, necessary renovations, or repositioning to capture higher market rents driven by unprecedented rent growth,” he adds. “Our management approach and long-term strategy are perfectly aligned to unlock this potential and drive double-digit annual NOI growth.”
Like with all its acquisitions, the 2024 assets are characterized by their strategic locations in Tier 1, high-barrier-to-entry infill markets, with significant discounts to replacement costs, positioning them for strong value-add potential. Many of these properties were acquired with short existing lease expirations, allowing BKM to implement its proven mark-to-market strategy, upgrading assets and capturing higher rents as leases roll over.
“Since our inception in 2013, BKM has consistently demonstrated its ability to grow and thrive, even in the face of economic headwinds. The trust that our institutional partners place in us is evident in the expansion of our existing relationships and the formation of new partnerships this year. As we look forward to closing out 2024 with another record year, we remain committed to our mission of delivering exceptional returns to our investors. Our outlook on the light industrial sector remains optimistic, and we believe that, even in the event of a significant economic downturn, multi-tenant light industrial properties will continue to perform well on a relative basis, ensuring ongoing value creation for our stakeholders.”
Building on a Successful 2023
The momentum in 2024 follows an exceptionally active 2023, during which BKM completed over $520 million in strategic acquisitions with five major institutional partners, as well as $80.4 million in dispositions. The 2023 transactions involved 15 properties across Arizona, California, Colorado, Nevada, and Oregon, adding nearly 3.3 million square feet to BKM’s national portfolio.
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