BKM Capital Partners Acquires Columbia Commerce Center in Portland, OR

Latest Acquisition Brings Portland-Area Holdings to 1.5 Million SF Across 7 Light Industrial Parks

Portland, OR—June 21, 2024—BKM Capital Partners has acquired Columbia Commerce Park, a 10-building property in Portland’s Airport submarket, which consists of 375,429 square feet of light industrial space.

The acquisition, BKM’s fourth for 2024, continues a buying spree the firm ramped up last year that has placed it on the radar screens of numerous notable prospects in the industrial sector. Noting BKM’s recent transaction activity, “the seller recognized BKM as an active, serious buyer with surety of close, approaching us with an appealing off-market deal,” explains Brian Malliet, Chief Executive & Chief Investment Officer at BKM. “This was right in our wheelhouse, presenting an opportunity to acquire another irreplaceable property in one of our core markets at a formidable discount.”

Columbia Commerce Park houses 30 shallow-bay and mid-bay industrial units ranging in size from 1,882 to 49,525 square feet. The 93% leased property also features 68 dock-high and 26 grade-level loading doors, up to 22’ clear heights, low 15% office finish, and a diverse array of units capable of supporting a variety of uses. Located at 5743 NE Columbia Blvd., the asset is just three miles away from Portland International Airport and 5 miles from Downtown Portland, providing tenants with access to the entirety of the West Coast’s population hubs within a day’s shipping distance.

“It was one of those assets that had a great location and sound structural qualities but was hindered by a conservative management approach,” commented Mason Waite, BKM’s Managing Director of Asset Management. “Sitting in an institutional portfolio as it has been for 22 years, the property was lacking an aggressive operating strategy to make it more than just an income-generating asset. Our approach aims to turn it into one of the premier locations for high-quality tenants in and around the Portland Airport submarket.”

As part of its value-add strategy, BKM intends to invest nearly $3 million in a nine-month capital improvement plan that includes upgrades to roofs, parking lots, landscaping, HVAC systems, and interior spec TIs. Updates to the signage and paint scheme will bring the asset to BKM’s brand standards and take advantage of its high-visibility location on Columbia Boulevard and the adjacent Route 30B. Plans also call for one 30,000-square-foot unit to be split into two shallow bay suites averaging 15,000 square feet each, as well as structural upgrades like new sprinkler systems and upgrades to improve dock functionality in select buildings.

In line with these enhancements, BKM intends to correct a 21% deficiency in rents over the course of its hold period, leveraging the property’s 3.3-year weighted average lease term to re-tenant a portion of the units and roll most of the existing tenancy to market rents.