REAL ESTATE NEWS

The first half for BKM Capital Partners was a busy one — from securing capital to making major offensive plays. In total, the firm, which focuses on light industrial, said in a statement today that it acquired $2.15 billion worth of real estate during the first half of the year to take its total assets under management to roughly $5.4 billion.

As a result, BKM has increased its portfolio from 14.7 million square feet at the start of the year to 24.8 million square feet across 161 properties.

A big chunk of the volume came from its partnership with Kayne Anderson, where the two teamed up to acquire Blackstone's Link Logistics for $1.8 billion. These were positioned in infill markets in the states of Georgia, California, Washington State and Texas, accounting for 51 total multi-tenant properties and 8.5 million square feet. In addition, this was the largest light industrial trade seen since 2022, the two firms reported at the time.

Separately, BKM made some smaller deals, closing six other transactions at almost $338 million in volume. This included a $69.5 million purchase of a 404,000-square-foot portfolio in the Atlanta metro area and an $85.65 million buy in Kent Valley of Washington State. Other individual acquisitions were made in Southern California, Silicon Valley, Texas and Phoenix.

"We look for well-located infill assets where operational complexity creates room to add value, and we underwrite each one to the same standard," Brett Turner, partner and managing director of acquisitions and dispositions at BKM, said in a statement.

"The Link portfolio brought scale and experienced local teams, but the smaller acquisitions reflect the same sourcing discipline that has always driven the BKM platform."

From a capital-raising standpoint, BKM fetched a $150 million strategic commitment from TriPost Capital Partners to back general partnerships, relationships, and company-sponsored vehicles.

Turning to operational improvement, BKM invested about $30 million across its portfolio for interior and exterior improvements. Total renewals and new leases came out to 425 in the first half.

At its more than 800 buildings with 4,800 tenants, occupancy now sits at 88 percent.

In the second half, BKM said it is looking at "several potential" acquisition opportunities in select new markets and existing ones, while hoping to maximize performance at its newly acquired properties.

"Our priority in the second half is to convert the scale added this year into strong operating results," Brian Malliet, CEO and chief investment officer, said.

"That means integrating the portfolio thoroughly, advancing asset-level business plans and remaining selective as new opportunities emerge. We have more capacity to invest, but the standard for where and how we deploy capital remains high."

Source: GlobeSt/ALM