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Kayne Anderson, BKM Acquire $1.8B Portfolio in Largest Light Industrial Deal Since 2022
BKM Capital Partners and Kayne Anderson Real Estate said Wednesday they have acquired an 8.5-million-square-foot portfolio from Link Logistics for $1.81 billion. Reportedly the largest light industrial transaction since 2022, the acquisition significantly expands the footprint and operating platform of the joint venture between Kayne and BKM across key U.S. markets. It places the JV among the largest owners of multi-tenant light industrial assets in the U.S., with 15 million square feet under management including the newly acquired portfolio.
The portfolio being acquired includes 51 multi-tenant light industrial properties across major infill markets in California, Washington, Texas and Georgia, averaging 90% occupancy. It also includes a dedicated operating infrastructure, including eight offices and 40 employees spanning property management, leasing, construction and property accounting. BKM’s business plan for the new properties includes targeted exterior upgrades, roof and HVAC work, market-ready improvements for vacant space and selective reconfiguration to reduce office buildout.
“Multi-tenant light industrial remains a highly fragmented segment with compelling fundamentals, and this transaction reflects our conviction in the strategy as well as our ability to partner with leading operators such as BKM to build differentiated platforms in attractive markets,” said Al Rabil, co-founder and CEO of Kayne Anderson Real Estate.
Brian Malliet, BKM’s founder, CEO and CIO, said, “This acquisition marks the largest addition to BKM’s platform to date and is representative of the strategy we have deployed in the multi-tenant light industrial space for years. It not only underscores the importance of deep operating expertise in this sector but also adds meaningful scale to our platform at a time when institutional interest in the light industrial segment is rapidly accelerating.”
Truist Securities served as financial advisor to Kayne Anderson Real Estate.
