BKM Capital Partners Acquires 250,000-SF Metro Portland Industrial Park for $50.7 million
Transaction Launches Joint Venture with New Institutional Partner
Portland, OR—September 30, 2024—BKM Capital Partners, a vertically integrated institutional fund manager, in collaboration with Whittier Trust, have acquired Tigard Business Park, a 259,124-square-foot light industrial park in the sought-after Portland-area city of Tigard, OR. The $50.7-million acquisition is BKM’s first joint venture with Whittier Trust, the oldest multi-family office headquartered on the West Coast.
Resting on just over 20 acres, Tigard Business Park consists of eight buildings and 33 units ranging in size from 4,700 to 15,000 square feet, providing space for a diverse array of tenant segments and further strengthening cash flow resiliency. The park is currently 95% occupied, with a weighted average lease term (WALT) of 3.7 years.
“Our in-house property management and leasing teams have been instrumental in elevating Tigard Business Park’s performance, benefiting from the robust growth of the broader market,” said Brett Turner, Senior Managing Director, Acquisitions and Dispositions. “However, heightened demand and the scarcity of available small-bay industrial space has resulted in a 16% rental gap at the property, which we are poised to capitalize on.”
The multi-tenant property has gone through a comprehensive cosmetic enhancement to align with BKM’s brand standards, including updated paint schemes, modernized signage, efficient landscaping, and improved roofing, HVAC systems, and parking facilities. Further, the property features 33 grade-level doors, providing an additional competitive advantage in the market.
“With over two-thirds of the asset already improved, our primary focus will now be on re-tenanting the units as leases roll over,” stated Turner. “We are confident that our capital improvements, coupled with the ideal mix of unit sizes, will attract a diverse range of tenants seeking proximity to local population centers.”
Strategically located at 11844 SW Pacific Hwy., Tigard Business Park offers exceptional access to major roadways, including SR-217, SR-99W, SR-205, and I-5, providing tenants with unparalleled connectivity to over one million residents and 54,408 businesses within a 10-mile radius, where nearly half of all households earn over $100,000 a year.
The Portland industrial market continues to face tight supply, particularly in the small-bay segment where vacancy rates hover around 4%, well below the broader industrial vacancy rate of 6-7%. This imbalance is exacerbated by Portland’s Urban Growth Boundary, which limits new industrial development and has kept starts significantly below historical averages. The limited supply has helped maintain strong demand for smaller industrial spaces, a trend that BKM Capital Partners is well-positioned to capitalize on with Tigard Business Park and its broader Portland light industrial footprint.
“As the demand for small-bay industrial space intensifies, our investment strategy focuses on maximizing value through proactive asset management and targeted capital improvements,” said Brian Malliet, CEO & CIO of BKM Capital Partners. “With the Portland metro area’s industrial vacancy remaining near all-time lows, particularly in the Westside submarket, we’re confident that Tigard Business Park is strategically positioned to meet the needs of tenants seeking quality industrial space in a high-demand, supply-constrained environment.”
Learn more at bkmtigardbp.com.
