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; Portland, Oregon and Los Angeles.
“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. “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 driven largely by 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 eight 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.
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.
In the Pacific Northwest, BKM bought the Airport Business Center, an 11-building light industrial portfolio, from an institutional investor. 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.
BKM paid $25.3 million for the Valley East Industrial Park, an 84,388-square-foot light industrial park in North Hollywood, California. 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.
