BKM and Kayne Anderson’s recently announced industrial partnership has swallowed up a 16-building portfolio in the East Bay Area.
Newport Beach-based BKM Capital Partners and Florida-based Kayne Anderson Real Estate have gone all-in on three properties in Concord and Hayward spanning 16 buildings and 505,000 square feet, the San Francisco Business Times reported.
The firms purchased the portfolio from Link Logistics Real Estate, an affiliate of Blackstone Real Estate, for more than $120 million, according to the Business Times.
PS Business Parks previously purchased the three properties in a larger transaction involving 18 Bay Area business and industrial parks in 2011. Blackstone acquired PS Business Parks in 2022 in a $7.6 billion all-cash transaction.
The sale was “a rare opportunity to secure critical mass in two of the most supply-constrained industrial submarkets on the West Coast,” Brett Turner, senior managing director of acquisitions and dispositions at BKM, said in a statement.
BKM and Kayne Anderson’s new properties sit on 34 acres of infill land. The purchases include the 176,056-square-foot Huntwood Business Center and the 82,562-square-foot Hesperian Business Park in Hayward and the 245,903-square-foot Concord Industrial Park in Concord. The properties combined are 89 percent leased with 70 tenants in total.
Kayne Anderson and BKM have linked up for a $1.5 billion joint venture targeting industrial properties spanning up to 500,000 square feet. BKM trumpeted light industrial as one of the strongest performing real estate asset classes and noted that the sector is often overlooked by traditional institutional capital.
“The partnership allows for large-scale capital deployment into the light industrial sector and deepens BKM’s presence nationwide,” BKM said. The Newport Beach-based firm aims to double its holdings to $5 billion of assets over the next two years.
Outside the Bay Area, BKM and Kayne Anderson’s joint venture bought a nine-building, 489,981-square-foot light industrial portfolio in Orlando, Florida, in June. It was “one of the largest light industrial portfolio trades in the Orlando metro in recent years,” BKM said in a statement.
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