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**BKM Capital Partners and Kayne Anderson Acquire Phoenix Industrial Portfolio for $167.9M**
BKM Capital Partners (BKM), in partnership with Kayne Anderson Real Estate, has acquired an 889,352-square-foot light industrial portfolio in the Phoenix metro area for $167.9 million. The deal was completed at a significant discount to replacement cost.
The portfolio, previously owned by an affiliate of Equus Capital Partners, comprises 364 units across 41 buildings and is currently 89% occupied by a diverse mix of tenants. The properties, primarily constructed in the 1970s and 1980s, feature a weighted average lease term (WALT) of approximately two years, offering a 22% mark-to-market opportunity in rental rates.
BKM has outlined plans for extensive physical upgrades, capital improvements, and strategic reconfigurations. As part of the value-add strategy, select larger units will be subdivided into smaller, more flexible spaces to meet growing tenant demand. The firm also plans to deploy on-site property management to elevate service delivery and enhance tenant retention.
This acquisition marks the sixth investment by the BKM-Kayne Anderson joint venture since its inception earlier this year and brings BKM’s total assets under management to over $3 billion.
The transaction was brokered by CBRE’s Rusty Kennedy, Joe Cesta, Darla Longo, and Brett Turner. BKM’s in-house acquisition efforts were led by Michael Grossner, Director of Acquisitions and Dispositions.
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