BKM Capital Partners Celebrates its 100th Acquisition Since Inception in 2013
Milestone Transaction Brings Current AUM to $2.3B, With 10.8 MSF Across 6 States
Newport Beach, CA—October 14, 2024—BKM Capital Partners, a vertically integrated institutional fund manager, has completed its 100th acquisition since its inception a decade ago. This milestone has been marked by the recent $17.4-million acquisition of Ash Business Center, an 89,728-square-foot small-bay industrial facility in Tempe, AZ.
Since 2013, the Newport Beach-based real estate fund manager and operator has completed $3.6 billion worth of transactions involving 18 million square feet of small and mid bay industrial space in the Western U.S.
Last year was particularly active for BKM, which invested more than $575 million in 11 strategic acquisitions across 15 properties. The firm also added 20 new staff members and executed over two million square feet of leasing. The momentum continued well into 2024, with Ash Business Center bringing BKM’s acquisitions total to $800 million and more than 4.2 million square feet of space in 17 transactions since 2023.
A DECADE OF UNPRECEDENTED GROWTH
Founded by Brian Malliet in 2013, BKM has emerged as a leading institutional fund manager and operator of multi-tenant, small-bay light industrial assets in the Western U.S. Whereas significant capital has historically focused on larger, big-box logistics-focused facilities, “I wanted to take an institutional approach to a segment of the market that had historically been overlooked and undervalued,” explained Malliet. “By leveraging the fragmented and somewhat localized nature of the sector, we were able to uncover opportunities to create value for investors via our niche expertise and sophisticated management approach.”
The tactic has proven to be effective thus far. Having started out with just two employees and five assets worth $77 million, BKM has grown its assets under management by over 2,900% over the past decade. Today, BKM is a 100 member operation that owns or has interests in $2.3 billion in assets, covering 10.8 million square feet across Arizona, California, Colorado, Nevada, Oregon, Texas, Utah, and Washington.
BKM’s investment strategy capitalizes on identifying underperforming properties located in high barrier-to-entry markets with in-place rents that are considerably below market rates. These factors create a conducive environment for rapid property-level NOI growth without relying on future market rent growth, or exposure to potential oversupply scenarios—both factors that are playing out in the current environment.
BKM has invested significant effort and resources into preparing for its next phase of expansion, focusing on strategic investment opportunities that align with its core expertise. “The small-bay industrial sector is experiencing significant momentum, and we believe this is just the beginning of a sustained upswing. Market activity is increasing, values are strengthening, and we are fully committed to our investment strategy. Our deep focus on this product type, coupled with our disciplined approach and industry-leading technology, positions us perfectly to seize the opportunities emerging in this vibrant market. As transactions continue to accelerate, we're excited to drive further value for our investors and expand our presence across the Western U.S.”
