BKM Capital Partners and Kayne Anderson Real Estate have acquired PacTrust Business Center in San Jose for $30 million. The acquisition represents a 55% discount to replacement cost and strengthens BKM’s foothold in Silicon Valley’s specialized industrial market.

Situated on 7.3 acres at 780 Montague Expressway in North San Jose’s Golden Triangle, PacTrust Business Center comprises 94,317 square feet across seven buildings. The property will be renamed Montague Exchange and is currently 96% leased to a diverse tenant roster.

“With more than 20 million square feet converted to other uses over the past decade, Silicon Valley’s light industrial inventory is disappearing faster than it’s being replaced,” said Brett Turner, senior managing director of acquisitions & dispositions at BKM. “This strategic acquisition gives us a high-performing asset in the heart of the Valley’s innovation corridor—offering suite sizes, infrastructure and a location that are becoming increasingly hard to replicate.”

The seller, PacTrust, was represented by Cushman & Wakefield. Turner led the acquisition on behalf of BKM, with support from Michael Grossner, director of acquisitions and dispositions.