CIT Group Funds Portion of Industrial Portfolio

The firm's real estate finance unit worked with BKM Capital Partners to provide financing and other services for the purchase of three properties in an 11-asset industrial portfolio.
Hohokam Business Park. Image courtesy of BKM Capital Partners

CIT Group Inc.’s Real Estate Finance business has arranged $66 million in financing deals for three Western U.S. properties that were recently acquired by BKM Capital Partners as part of an 11-asset industrial portfolio.

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The properties that were financed through CIT were:

  • Vista Tech Center, a 54-unit, multi-tenant industrial property in Vista, Calif.
  • Broadwood Business Park, a four-building, 34-unit, multi-tenant industrial property in Mesa, Ariz.
  • Hohokam 10E, an 82-unit, multi-tenant industrial property in Tempe, Ariz.

CIT also provided a variety of treasury and cash management services in connection with the financing deals. CIT’s Real Estate Finance unit, part of its Commercial Finance division, originates and underwrites senior secured real estate transactions, including single properties, property portfolios and loan portfolios. The two firms have worked together in the past, including arranging $50 million in financing for a BKM acquisition in San Diego. Brett Turner, BKM managing director of acquisitions, said in a prepared statement CIT understands the company’s niche investment strategy and has worked with them on complex transactions with multiple properties that require certainty of execution in expedited time frames.

BKM deals

Newport Beach, Calif.-based BKM focuses on multi-tenant light industrial assets in Western U.S. Earlier this month, BKM acquired the 11-property, 2.7 million-square-foot portfolio across Arizona, California and Oregon for a total of $425.4 million in one of the year’s first large industrial deals. BKM purchased eight of the assets through its BKM Industrial Value Fund II and III in partnership with the Canyon Catalyst Fund, a vehicle of the California Public Employees’ Retirement System (CalPERS) managed by Canyon Partners Real Estate.

BKM has been active in the past year, closing its second industrial value fund in May with $382 million in equity commitments. In July, the company acquired Pacific Business Center, an 898,389-square-foot, 13-building industrial property in Henderson, Nev., for $111.3 million. In February 2019, BKM acquired a Denver industrial property for $24 million from Mount West Industrial Properties.