BKM Capital Partners Executes 740,000 Square-Foot Small-Bay Light Industrial Portfolio Acquisition
The portfolio includes seven properties with 21 buildings and 240 units
LAS VEGAS, March 20, 2023 – BKM Capital Partners, a vertically integrated institutional fund manager, executed a significant small-bay industrial portfolio acquisition, further expanding a partnership with a global alternative investment firm. The transaction involves a seven-property, 21-building light industrial portfolio in Las Vegas, Nevada adjacent to the Las Vegas Strip and International Airport.
The portfolio comprises 740,000 square feet of space, 240 units and is nearly 98% occupied. The acquisition increases BKM’s current holdings in the Las Vegas market to more than 2.3 million square feet.
“This acquisition reflects our shared understanding of the compelling merits of the light industrial asset class. We see an opportunity to capture value through this rare, off-market acquisition,” said Brian Malliet, Founder and CEO of BKM Capital Partners, which will serve as the operating partner. “BKM continues to expand our footprint in key Western U.S. markets as we enter our second decade in business, and we expect to accelerate growth through our partnerships with best-in-class investment partners.”
The portfolio includes properties in Las Vegas’ southwest submarket, including Valley View Business Center I-IV, a 15-building business park totaling 481,135 square feet; Decatur Crossing II, a three-building project totaling 140,596 square feet; and Sunset Business Center, a two-building project totaling 71,298 square feet; as well as an asset in the Las Vegas Airport submarket, Gateway Business Center, a property totaling 46,888 square feet. The portfolio is 98% leased to 240 quality tenants across a diverse range of industries.
BKM Capital Partners’ Brett Turner, Senior Managing Director of Acquisitions, added, “This acquisition was an opportunity to expand our Las Vegas holdings with a high-quality industrial portfolio in one of the top U.S. industrial markets by rent growth. By acquiring this portfolio, we are able to achieve diversification and scale in markets where we continue to see opportunities for value creation on behalf of our investors.”
“As we continue to focus on acquiring well-positioned properties in strong growth markets, we are also ensuring that each property within the portfolio fits nicely within our niche investment strategy,” adds Malliet. “That strategy is based on enhancing value through substantial capital improvements, strategic interior-unit sizing, and cosmetic improvements to deliver a higher-end industrial product for today’s new high-end manufacturing and warehousing users.”
BKM’s in-house property management and construction teams will execute an asset improvement program designed to create a market-leading and standardized experience for tenants. In addition to incorporating BKM’s distinctively branded paint design, planned improvements at the Las Vegas portfolio will include upgrades to the landscaping, parking areas, HVAC units, property signage and roofs. BKM will leverage its existing local management team and vertically integrated platform to add value into the properties.
About BKM Capital Partners
BKM Capital Partners is a proven real estate fund manager and operator focused exclusively on investing in light industrial and multi-use logistics properties in the Western United States. Headquartered in Newport Beach, CA, with over 90 employees in 13 offices, BKM Capital Partners implements a value-add strategy targeting under-managed and under-capitalized assets. The team has invested in over $2.6 billion of small and mid-bay properties with over 3,000 tenants in 70+ properties since 2013. Its approach includes the acquisition, refurbishment, repositioning and active management of these industrial properties in an effort to drive NOI growth and generate a strong IRR and multiple on invested equity. BKM’s foundation is built upon: Focus; Operational Excellence; Technology; and Client Service. Additional information is available at bkmcp.com