BKM Capital Partners Forms Partnership with StepStone Real Estate
NEWPORT BEACH, CA, August 1, 2023 - BKM Capital Partners (“BKM”) has announced the formation of a partnership with StepStone Real Estate (“SRE”), the real estate arm of the global private markets investment firm StepStone Group (Nasdaq: STEP). In this so-called GP-led secondary direct transaction, the BKM-SRE Partnership commenced with SRE’s acquisition of BKM’s limited partners’ interests in two large, stabilized industrial properties located in the high-growth markets of Las Vegas and Burbank, California, and a commitment of fresh capital to expand the portfolio by acquiring additional value-add small and mid-bay light industrial assets.
The BKM-SRE Partnership is investing alongside BKM Industrial Value Fund II, the second in BKM’s series of value-add funds focused on the small and mid-bay light industrial space. The partnership includes ownership interests in Pacific Business Center, a 748,000 SF Class-A light industrial park in Henderson, NV and Backlot Burbank, a 306,000 SF Class-A light industrial park in Burbank, CA (collectively, the “Initial Investments”).
In addition to acquiring the interests in the Initial Investments, SRE has earmarked capital to expand the portfolio by co-investing in additional attractive small and mid-bay light industrial assets across the Western U.S. SRE has been focused on increasing its exposure to value-add industrial assets and selected BKM as their latest partner to achieve those objectives.
“This partnership speaks to the strength of our ongoing investment strategy and represents a significant milestone in our strategic growth plan,” says Brian Malliet, Founder and CEO of BKM Capital Partners. “Combining our expertise in value-add real estate investment with StepStone's proven track record in the global real estate market, we are poised to unlock unparalleled opportunities. This partnership exemplifies our commitment to delivering sustainable value for our investors and partners, and we look forward to a long future together."
“We are pleased to be partnering with a quality vertically integrated manager like BKM while increasing our industrial exposure through a GP-led secondary,” said John Waters, SRE’s Head of Investments. “Gaining exposure to high quality industrial assets at an attractive basis is a key component to this strategy,” he added.
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 $3.1 billion of small and mid-bay properties with over 3,500 tenants in 85 properties since 2013. Its approach includes the acquisition, refurbishment, repositioning and active management of these industrial properties 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.