Costar: New Partnership Brings BKM Capital Industrial Investment Power

NEWPORT BEACH, CA, August 3, 2023 – BKM Capital Partners has brought in a partner to bolster its investments in small industrial properties.

BKM, of Newport Beach, California, formed a partnership with San Diego-based StepStone Real Estate, with StepStone acquiring an interest in two BKM assets as well as committing to help expand the portfolio.

The BKM-StepStone partnership will be investing alongside BKM Industrial Value Fund II, the second in BKM’s series of value-add funds focused on the light industrial space.

Gaining exposure to high-quality industrial assets at an attractive price was a key component in joining BKM with this strategy, John Waters, StepStone’s head of investments, said in a statement. Terms of the deal were not disclosed.

BKM Industrial Value Fund II’s portfolio consists of 237 properties totaling 6.5 million square feet, according to CoStar data. The portfolio has an occupancy rate of 96%.

The BKM-StepStone partnership commenced with StepStone acquiring BKM’s limited partners’ interests in two large, stabilized industrial properties located in the high-growth markets.

The deal includes ownership interests in Pacific Business Center, a 748,000-squarefoot, multibuilding, Class A light industrial park in Henderson, Nevada, and Backlot Burbank, a multibuilding, 306,000-square-foot Class A light industrial park in Burbank, California.

In addition to acquiring the interests in the initial properties, StepStone has earmarked capital to expand the portfolio by co-investing in additional light industrial assets across the western United States.

“This partnership speaks to the strength of our ongoing investment strategy and represents a significant milestone in our strategic growth plan,” Brian Malliet, founder and CEO of BKM Capital, said in a statement.

You can read the article here.