BKM Capital Adds 1.14M SF of Industrial Space for $280M
By Greg Cornfield May 18, 2023 3:20 pm
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BKM Capital Partners is growing its footprint after buying 10 light industrial properties and more than 1.1 million square feet of space for more than $280 million.
The acquisitions include 35 buildings in Los Angeles, Las Vegas and Portland, Ore., and BKM plans to invest in improvements and upgrades at the properties.
“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. “Despite concerns over the broader health of the economy and slowdown in commercial real estate, we believe acquisitions like these place BKM in a prime position to capitalize on the continued strength of the industrial sector.”
Most of the activity occurred in Las Vegas through two off-market transactions involving eight properties with 22 buildings and nearly 830,000 square feet near the Las Vegas Strip and Harry Reid International Airport.
The acquisitions include the Valley View Business Center I-IV, a 15-building development with 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; the 46,888-square-foot Gateway Business Center; and the 88,205-square-foot Decatur Business Center. Terry York Properties and Heller Companies sold the portfolio, which is 98 percent leased.
In Southern California, BKM paid LAIS Equities $25.3 million for the 84,388-square-foot Valley East Industrial Park in Los Angeles’ North Hollywood neighborhood. Built in 1969 near the Burbank Airport, it is the world’s largest concentration of studio production and entertainment operations, and will be renamed Backlot NoHo after it’s renovated.
In the Pacific Northwest, BKM bought the 11-building Airport Business Center in Portland for $37.3 million. The 228,518-square-foot business park is 92 percent occupied.
Since inception in 2013, BKM has completed more than $3.1 billion in acquisitions involving more than 15 million square feet across 85 industrial properties with over 3,500 tenants. The firm says it has nearly $2 billion in assets under management.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
