BKM Capital Partners Buys $425M Industrial Portfolio

The institutional fund manager teamed up with Canyon Catalyst Fund for part of the 11-property purchase.
Spectrum Centre Business Park in Lake Forest, Calif. Image courtesy of BKM Capital Partners

Institutional fund manager BKM Capital Partners has acquired an 11-property industrial portfolio across Arizona, California and Portland for $425.4 million, in one of the year’s first large industrial deals.

Newport Beach, Calif.-based BKM has picked up eight of the assets through its BKM Industrial Value Fund II and the other three assets in partnership with the Canyon Catalyst Fund, a vehicle of the California Public Employees’ Retirement System (CalPERS) managed by Canyon Partners Real Estate.

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The transaction for the nearly 2.7 million square foot portfolio comes after BKM Capital Partners closed its second industrial value fund with $382 million in equity commitments last May.

BKM and Canyon Catalyst Fund have worked together before. In January 2018, the joint venture closed on the purchase of the 14-building, 352,280-square-foot Bayside Business Park in Fremont, Calif.

Growing in the Southwest, West Coast

The newly acquired collection of properties spans 493 units and is nearly 90 percent occupied across four markets. As part of the deal, BKM acquired a $157.5 million trove of four properties in the Phoenix area including:

  • Magnolia (35,385 square feet) at 2655 Magnolia St. in Phoenix
  • Hohokam 10E (82 units) along South 48th Street, 12th Street, and South Park Lane in Tempe
  • Broadwood (four buildings, 34 units) at 2450-2452 W. Broadway Road in Mesa
  • Broadway 101 Commerce Park (55 units) at W. Broadway Road, Mesa

The firm also purchased $124.2 million of properties in Northern California, including:

  • Bradshaw (33 units) at 9828, 9912, 9940, and 9960 Business Park Drive in Sacramento
  • Horn Road (48 units) at 9901-9981 Horn Road in Sacramento
  • Concord Business Park (27 units) at 5600, 5650, 5700, and 5750 Imhoff Drive and 1590 Solano Way in Concord
  • Sierra Trinity Business Park (53 units) at 6701 Sierra Court in Dublin

In Southern California’s Orange County and Northern San Diego County, BKM added two sizeable multi-tenant properties to its platform for $101.3 million:

  • Spectrum Centre Business Park (73 units) at 20918 Bake Parkway in Lake Forest
  • Vista Tech Center (54 units) at 1483-1499 Poinsettia Ave. in Vista

Finally, in the Pacific Northwest, BKM acquired Park 217, a $42.4 million business park at the intersection of Southwest Pacific Coast Highway and Southwest Garden Place in Tigard, Ore.