BKM Capital Partners and Kayne Anderson Real Estate have entered a $1.5-billion joint venture focused on light industrial real estate. With a $1.5-billion commitment from Kayne Anderson, the partnership will allow for large-scale capital deployment into the light industrial sector and deepen BKM’s presence nationwide.
The JV will focus on middle-market properties with below-market rents, high vacancy, and/or operational inefficiencies that can be acquired at a discount to replacement cost and then repositioned to drive value.
“We’ve spent over a decade building an operating platform designed explicitly for small-bay industrial, which is both operationally complex and highly fragmented,” said Brian Malliet, founder, CEO & CIO of BKM. “With Kayne Anderson’s support, we can now bring that model to scale across new markets with a partner who shares our long-term view.”
Although BKM has traditionally focused on the western U.S., through the JV it will expand into infill markets across the U.S. with common fundamentals: strong population and job growth, constrained new supply and rising tenant demand driven by logistics, technology and entrepreneurial business formation.
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