Thursday, August 11, 2016

BKM Capital Partneers Acquires Seven-Building Multi-Tenant Light Industrial Park in Las Vegas, NV for $15.65 Million

Spencer Airport Center, Las Vegas, NV

            LAS VEGAS, NV,  Aug. 11, 2016 – BKM Capital Partners, an institutional fund manager with a niche focus on value-add, multi-tenant light industrial investments, has acquired Spencer Airport Center, a seven-building 177,597 square-foot multi-tenant industrial park in Las Vegas, Nevada for $15,650,000.

            This is the BKM’s fourth acquisition in the Las Vegas market, bringing the firm’s local assets under management to 710,538 square feet. 

Brian Malliet
            “The Las Vegas airport submarket in which Spencer Airport Center is located, has demonstrated tremendously high occupancy and consistent demand that is significantly outpacing supply,” says Brian Malliet, CEO and Co-Founder of BKM Capital Partners.

“Quality market fundamentals and ongoing growth in the region make our below-replacement-cost and significantly below peak pricing, acquisition of this asset particularly noteworthy.”

            BKM purchased Spencer Airport Center at more than 40 percent below replacement costs, according to Malliet.

            “We focus on acquiring assets with intrinsic value that can be grown over time through our unique operator platform,” he says.  “Because we specialize in light industrial product, our team understands how to operate these properties in order to deliver optimum performance over time, resulting in strong yields for our investors.”

            Malliet explains that the region surrounding Spencer Airport Center boasts 92 percent occupancy and is continuing to thrive. Nevada added more than 32,700 jobs over the past year, and its tax incentives continue to drive industrial tenants to the area. The property itself is approximately 78 percent occupied.

Brett Turner
“The property’s low occupancy, coupled with strong demand throughout the region will provide immediate stabilized cash flow and the opportunity to increase NOI as we begin to lease vacant space,” says Malliet. 

“In addition, in-place rents are currently 10-18 percent below market value, delivering a deeper opportunity for increased revenue as leases begin to roll.”

      According to Brett Turner, Director of Acquisitions at BKM Capital Partners, “This acquisition further expands our foothold in the Las Vegas market. 

"We plan to utilize our existing presence and local property management infrastructure in order to decrease operating costs and increase overall revenue for the asset. During escrow we were able to leverage our existing Las Vegas platform to increase occupancy by 10%, already exceeding underwriting.”

For a complete copy of the company’s news release, please contact:

Lexi Astfalk/Jenn Quader
Brower, Miller & Cole
(949) 955-7940

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