BKM Capital Partners, StepStone Team Up
The partnership will focus on the acquisition of light industrial assets.
BKM paid $84.8 million for Backlot Burbank in 2018. Image courtesy of BKM Capital Partners
BKM Capital Partners has formed a partnership with StepStone Real Estate, the real estate arm of the global private markets investment firm StepStone Group, for a GP-led secondary direct transaction.
SRE acquired interests in two BKM industrial properties, which are part of the BKM Industrial Value Fund II. The firm has also committed to additional future investments in small- and mid-bay light industrial assets.
The deal includes ownership in Pacific Business Center, a 748,000-square-foot industrial park in Henderson, Nev. According to CommercialEdge data, BKM acquired the three-building, Class A property in 2019 from Northwestern Mutual Real Estate as part of a $111 million portfolio transaction. The second property is a light industrial asset in Burbank, Calif., leased to entertainment companies. BKM paid $84.8 million for Backlot Burbank in 2018. A joint venture between Shubin Nadal Associates and Penwood Real Estate Investment LLC sold the 306,000-square-foot asset.
As part of the partnership agreement, StepStone Real Estate will invest in other small- and mid-bay industrial properties across Western U.S markets. At the beginning of the year, the company teamed up with Provender Partners for the recapitalization of a 1 million-square-foot cold storage portfolio valued at $158 million. SRE is focused on increasing its portfolio of value-add industrial assets.
BKM’s deals in 2023
BMK closed a major deal earlier this spring. The company, in partnership with Investcorp, expanded its Las Vegas portfolio by 740,000 square feet, with the acquisition of seven light industrial properties. Terry York Properties sold the assets for $157.8 million in an off-market transaction.
More recently, BKM purchased Commerce Carlsbad, an eight-building industrial park in Carlsbad, Calif., which was subsequently renamed Pacific Coast Industrial Center. Alexandria Real Estate Equities sold the Class B asset for $44 million.
BKM has 57 business parks under ownership across the Western U.S. and 9.6 million square feet currently under management.
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