BKM Capital Partners’ Grows Holdings by 1.14M+ SF
Adds 10 Western U.S. Light Industrial Business Parks in Under 30 Days
NEWPORT BEACH, CA, May 18, 2023 — BKM Capital Partners, a vertically integrated institutional fund manager, has added 10 properties to its portfolio in four recent transactions valued at more than $280 million. The deals involve more than 1.1 million square feet of light industrial space in 35 buildings in key markets in Las Vegas, NV, Portland, OR and Los Angeles, CA.
“These acquisitions are a testament to BKM’s expertise in sourcing and executing transactions that generate attractive returns for investors and partners," said Brian Malliet, BKM’s Founder and Chief Executive Officer. "We are proud that our team was able to successfully seize several opportunities to acquire assets in desirable locations, at attractive pricing and with long-term upside potential. The transactions further solidify our position as one of the top players in the Western U.S. light industrial real estate market. BKM has grown significantly over the past decade thanks largely in part to our close relationships with strong, trusted capital partners. We plan to continue building on that success with both our existing partners and via new relationships.
The bulk of the activity occurred in Las Vegas, where BKM significantly expanded its holdings through two off-market transactions involving 8 properties totaling nearly 830,000 square feet. The 22 small-bay industrial buildings consist of 321 units and are located near the Las Vegas Strip and McCarran Airport in Clark County’s Southwest submarket.
Expanding its partnership with a global alternative investment firm, BKM acquired a seven-property portfolio of 21 light industrial buildings. Comprised of 740,000 square feet of space in 240 units, the properties include the Valley View Business Center I-IV, a 15-building business park totaling 481,135 square feet; the three-building, 140,596-square-foot Decatur Crossing II; Sunset Business Center, with 71,298 square feet in two buildings; and the 46,888-square-foot Gateway Business Center. Terry York Properties and Heller Companies sold the portfolio, which is 98% leased to tenants across a diverse range of industries.
BKM also acquired the 88,205-square-foot Decatur Business Center from Terry York Properties. Built in 2008, the property features warehouse, office, and showroom space in a two-story concrete tilt-up facility.
Meanwhile in the Pacific Northwest, BKM bought the Airport Business Center, an 11-building light industrial portfolio, from an institutional investor. Situated in the heart of Portland’s NE/Columbia industrial corridor, the 228,518-square-foot business park is 92% occupied and consists of 41 units in 11 buildings. BKM made the $37.3-million acquisition through a joint venture partnership.
Closer to home, BKM paid $25.3 million for the Valley East Industrial Park, an 84,388-square-foot light industrial park in North Hollywood. Built in 1969, the asset consists of 36 units across two rear-loading industrial buildings close to the Burbank Airport and the largest concentration of studio production and entertainment operations in the world. BKM acquired the asset, to be renamed Backlot NoHo after repositioning, from LAIS Equities.
As part of its broader value-add investment strategy, BKM is implementing capital improvement programs to enhance the performance, costs and efficiency of these assets while extending their lifespan. The firm is also leveraging its in-house property management and construction teams to execute strategic upgrades designed to create a market-leading and standardized experience for tenants. In addition to incorporating BKM’s distinctively branded paint design, planned improvements include upgrades to the landscaping, parking areas, HVAC units, property signage and roofs.
“Given the extremely competitive sales environment and resulting high prices, capital players are having a hard time finding quality industrial opportunities that pencil out, particularly those with significant value-add potential,” said Brett Turner, BKM’s Senior Managing Director of Acquisitions and Dispositions. “BKM’s continued ability to acquire and improve value-add assets is a testament to the team’s expertise in sourcing, structuring and executing transactions that generate attractive risk-adjusted yields. Despite concerns over the broader health of the economy and slowdown in commercial real estate, we believe acquisitions like these place BKM is a prime position to capitalize on the continued strength of the industrial sector.”
Since inception in 2013, BKM has completed more than $3.1 billion worth of acquisitions involving 15 million-plus square feet across 85 industrial properties with over 3,500 tenants. As it kicks off the next decade, the company has strategically positioned itself for continued growth, with nearly two billion dollars in assets under management.