BKM Capital Partners Expands DFW Presence with Great Southwest Acquisition

Newport Beach, CA — JULY 8, 2026 — BKM Capital Partners, a leading real estate fund manager and operator focused exclusively on small- and mid-bay light industrial properties across the United States, and German American Realty GmbH, a Cologne-based investment and fund manager, has acquired Post & Paddock Industrial Park, formerly known as 1000 Post & Paddock, in Grand Prairie, Texas, for approximately $11 million. The 78,000-square-foot shallow-bay industrial park sits on 4.5 acres within the Great Southwest submarket, one of the most active industrial corridors in the Dallas-Fort Worth metroplex.

The three-building property is currently 83% occupied, with no single tenant accounting for more than 7.5% of rentable square footage. With a 1.7-year weighted average lease term, the rent roll offers a clear path to incremental rent growth through multiple smaller lease events rather than relying on any single rollover.

“Functional shallow-bay product at this suite size is genuinely hard to find in an infill submarket like Great Southwest because limited land and rising construction costs make it difficult to replicate,” said Brett Turner, BKM’s Senior Managing Director of Acquisitions & Dispositions. “When you find an asset like this trading below replacement cost, especially one with multiple embedded opportunities for incremental growth across the rent roll, it’s a straightforward case for putting capital to work.”

Turner, with support from Charlie Farmer, Director of Acquisitions & Dispositions, led the acquisition for BKM. The sellers, PHP and Caprock, were represented by Eliza Bachhuber, Senior Vice President, and Elliott Dow, Senior Associate, of CBRE National Partners.

Built in 1984, Post & Paddock Industrial Park consists of three buildings with 27 units configured for smaller-format industrial users, with an average suite size of 2,800 square feet. The property offers 39 drive-in doors, 16-foot clear heights, and approximately 30% office finish. Its shallow-bay configuration aligns with one of the most consistently in-demand product types in the submarket, particularly among last-mile distributors, light manufacturers, and service-oriented businesses that need flexible, right-sized infill space.

BKM has planned a targeted capital program focused on modernizing the asset’s appearance and functionality. The upgrades—including façade improvements, parking lot repairs, HVAC and roof work, refreshed paint and landscaping, upgraded building and tenant signage, and spec suite buildouts in vacant units—are designed to sharpen the property’s competitive position while supporting tenant retention and future rent growth.

“DFW has posted positive industrial absorption for the past fifteen years,” said Brian Malliet, BKM’s Founder, CEO and Chief Investment Officer. “This absorption speaks to something deeper than a cyclical rebound. It reflects a market with durable demand drivers, broad-based economic growth and long-term tailwinds that continue to support small-bay industrial space. A business plan like ours benefits from that kind of backdrop, and it’s why we intend to keep growing our exposure in DFW.”

Located just off Highway 360, the property provides immediate access to I-20, I-30 and Loop 12, with strong connectivity to DFW International Airport. Positioned between Dallas and Fort Worth, Post & Paddock Industrial Park draws from both labor markets, with more than 294,000 workers living within 15 miles, and sits within reach of major regional distribution corridors and significant employment centers including General Motors.

The Great Southwest submarket has an overall vacancy rate of 8.0%, already 20 basis points tighter than the broader DFW market. The micro-markets immediately surrounding the property are tighter still, and with only approximately 455,000 square feet under construction across the submarket, new supply offers little near-term competition.

Learn more about the property here.