BKM Capital Partners (BKM) acquired a three-property portfolio totaling 200,300 square feet in the Dallas-Fort Worth and Houston areas for $27.5 million. Completed on behalf of BKM Industrial Value Fund III, the portfolio was acquired at a 43% discount to replacement cost.

It consists of 67 units across 11 buildings. The properties include: Great Southwest Business Park (formerly GSW Circle), featuring 73,600 square feet across 30 units in five buildings in North Dallas’ South Stemmons submarket; Royal 35 Business Park (formerly Plaza Circle), four buildings totaling 24 units and 68,000 square feet in DFW’s Great Southwest submarket;  and Kinghurst Business Center (formerly Kinghurst Circle), 13 units in two buildings totaling 58,700 square feet in Houston’s Southwest Corridor.  The properties are 98% leased. The buildings were constructed between 1981 and 1986.  

As part of its value-added approach, BKM will implement a $ 2.1 million capital improvement plan. The firm intends to leverage the properties’ weighted average lease term of just two years to capture a 26% mark-to-market opportunity in rents.