BKM Capital Pays $254M for Low Vacancy Southwest Industrial Assets

The portfolio includes buildings in Arizona and and Nevada

BKM Capital Partners is strengthening its Southwest industrial footprint by acquiring six properties in the region for more than $254 million.

The portfolio, which includes 21 buildings in Nevada and Arizona, takes up more than 1.2 million square feet. In total, there are 108 units, with the median size for each one being 13,357 square feet.

The following properties are included in the deal: Mesa Vista A & B in Las Vegas (163,165 square feet), 801 South 75th Avenue in Tolleson, Arizona (331,398 square feet), Cameron Industrial Center in Paradise, Nevada (100,392 square feet), Park Lane North & South in Tempe, Arizona (134,200 square feet), Rose Garden Business Park in Phoenix, Arizona (157,631 square feet), and Kyrene CommercePlex in Chandler, Arizona (312,403 square feet).

The properties offer a total of 268 total dock-highs, 117 grade-level doors, and clear heights that range from 14 to 30 feet. In addition, there is ample parking at the sites.

“Opportunities to acquire industrial portfolios of this scale and quality are rare, especially in supply-constrained markets like Phoenix and Las Vegas,” Brett Turner, BKM’s senior managing director of acquisitions & dispositions, said in a statement.

“Phoenix and Las Vegas are experiencing unprecedented demand for infill industrial properties, driven by population growth, expanding e-commerce, and a lack of new small-bay supply. “These assets not only align with our strategy but also reinforce our ability to capitalize on market trends and deliver exceptional results for our investors.”

While the portfolio comes with what BKM calls "tight" vacancy rates the range between 2.2 percent and 4.7 percent (below the national average), the real estate operator warns that the newly purchased assets might come with "additional tailwinds for rental growth."

The move by the Newport Beach, California firm follows its $550 million recapitalization of nine west coast value-add light industrial properties it struck in December with Kayne Anderson Real Estate. That portfolio covers more than 2.1 million square feet and 510 units. According to the company, it has poured more than $4.5 billion into small and mid-bay light industrial assets since 2013.

After a slowdown in 2023, less vacant space is starting to hit the national industrial sector. A recent Colliers report finds that new bulk occupancies in 2024 increased by 1.5 percent to 307 million square feet. By region, the Western markets controlled the largest amount with 95 million square feet. That included 370 new bulk occupancies and was up 4.2% over 2023’s total.

View the article on Globest.com.