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.