BKM Capital Partners Executes $261M Recapitalization of Fund I

Multi-tenant parks attract a growing entrepreneurial tenant base, cater to numerous users and allow for growth within the park, typically leading to higher tenant retention and a lower risk profile for owners. A recent example of this beneficial approach is Newport Beach-based BKM Capital Partners’ $261 million recapitalization of its value-add industrial Fund I, expanding a partnership with Investcorp and marking the completion of an investment thesis involving the fund managers’ first fund.

The flagship investment vehicle launched in 2013 and is currently comprised of seven multi-tenant industrial assets totaling roughly 1.3 million square feet of space in top-tier industrial markets. A joint venture between Investcorp and BKM Capital Partners acquired the portfolio.

“This recapitalization of BKM’s Fund I is the true definition of win-win. We are incredibly proud of our ability to execute a full-circle investment on our first fund that generated remarkable results and resoundingly upheld our investment thesis,” says Brian Malliet, BKM Capital Partners’ CEO and founder.

The Fund I portfolio houses a diverse tenant base of roughly 450 tenants and is 93 percent leased.

• Black Canyon Business Park in Phoenix: 11 buildings totaling 170,816 square feet
• Rose Garden Business Park in Phoenix: Nine buildings totaling 157,604 square feet
• Twins Business Park in Tempe: Two buildings totaling 120,496 square feet
• Metro Industrial Center in Phoenix: Five buildings totaling 113,822 square feet
• Ash Business Center in Tempe: Nine buildings totaling 89,728 square feet
• Seattle Exchange I in Tukwila submarket: 27 buildings totaling 478,435 square feet Seattle Exchange II in Tukwila submarket: 11 buildings totaling 183,162 square feet