BKM Capital, Kayne Anderson Buy SoCal Industrial Buildings

BKM Capital Partners and Kayne Anderson Real Estate added over 3 million square feet of light industrial real estate in Southern California to their joint venture’s growing collection.

The firms, which entered into a partnership to buy $1.5 billion in light industrial real estate a year ago, made the SoCal acquisitions as part of a broader portfolio buy from Link Logistics, according to a news release from BKM and Kayne Anderson. The broader portfolio spans 8.5 million square feet and includes assets in the Bay Area as well as Austin, Dallas, Atlanta and Washington, D.C. BKM and Kayne Anderson spent more than $1.8 billion for the 51-property pickup, an average of $35.3 million each.

The acquisition includes three light industrial sites in the Inland Empire, eight in the Los Angeles area, and eight in Orange County. The Southern California purchases span 3.1 million square feet across 144 buildings comprising 1,133 units for light-industrial tenants.

In the Inland Empire, BKM and Kayne Anderson purchased the Archibald Business Center and Golden West Business Park near Ontario International Airport in Rancho Cucamonga and the Mountain Avenue Business Park in Upland. The Los Angeles buys include properties in the South Bay and others like the Chatsworth Business Center and Lurline Business Park in the San Fernando Valley and Cerritos Business Center in Cerritos. Down south in Orange County, the acquisitions span properties in Garden Grove, Anaheim, Yorba Linda, Santa Ana and the Irvine Spectrum district.

The greater portfolio is 90 percent occupied and consists of nearly 2,000 units across 275 buildings in infill submarkets within high-growth markets. BKM plans exterior upgrades, roof and HVAC work and to make improvements and reconfigurations to interior spaces to reduce tenant office buildout. The office buildout is expected to decline from 37 percent to 33 percent, according to the joint venture’s calculations.

BKM and Kayne Anderson’s joint venture now has 15 million square feet of space under its management, with the deal cementing its spot as one of the largest owner-operators of multi-tenant light industrial assets in the United States, according to the companies.

— Chris Malone Méndez