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BKM Acquires San Jose Business Park
BKM Capital Partners acquired Junction Business Park in San Jose. The multi-tenant light industrial property, spanning 119,101 square feet in two buildings, sold for $31 million, or $260 per square foot.
“Although San Jose has seen significant industrial development in recent years, the availability of smaller, high-quality light industrial assets remains at a minimum,” said Brett Turner, senior managing director of acquisitions and dispositions at BKM. “Our certainty of close and solid financing helped us purchase the property at a significant discount to replacement cost. We’re confident that once we complete our upgrades and leasing plans, Junction Business Park will be a highly sought-after location for the market’s top light industrial tenants.”
The property is currently 100% leased to 13 tenants, and BKM intends to take advantage of a 2.5-year WALT to correct an 18% market rent deficiency over its four-year hold period. The acquisition brings BKM’s Northern California portfolio to more than 900,000 square feet.
BKM was represented in the deal by Cushman & Wakefield’s National Industrial Advisory Group, including Jeff Chiate, Rick Ellison, Scott Prosser, Steve Hermann, Jack Depuy, Mike Adey, Brad Brandenburg, and Matt Leupold. Stockbridge Capital Group was the seller.
