BKM Closes $261M Portfolio Recap

Black Canyon Business Park. Image courtesy of BKM Capital Partners

BKM Capital Partners has closed on a $261 million recapitalization of a 1.3 million-square-foot multistate industrial portfolio. BKM partnered with Bahraini investment manager Investcorp for the deal, with CBRE providing debt and advisory services.

The assets involved in the deal include two properties near Seattle and five within the Phoenix market. BKM had acquired the seven properties between 2014 and 2016, CommercialEdge data shows. The owner invested in capital improvements to reposition the portfolio, which was constructed in the 1970s and ’80s.

The portfolio includes:

• Black Canyon Business Park, 170,816 square feet in Phoenix
• Rose Garden Business Park, 157,604 square feet in Phoenix
• Metro Industrial Center, 113,822 square feet in Phoenix
• Twins Business Park, 120,496 square feet in Tempe, Ariz.
• Ash Business Center, 89,728 square feet in Tempe
• Seattle Exchange I, 478,735 square feet in Tukwila, Wash.
• Seattle Exchange II, 183,162 square feet in Tukwila

Spanning 74 buildings, the portfolio is 93 percent leased to a diverse mix of approximately 450 tenants. The properties are part of BKM’s value-add Fund I, which targets smaller, last-mile infill assets within the two markets.

Back in February, BKM sold one of its Tempe assets to Investcorp for $85.4 million. CommercialEdge shows MetLife provided the buyer with a $63.5 million loan for the five-building, 536,051-square-foot industrial park.