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| Brian Malliet |
ORANGE COUNTY, CA – BKM Capital
Partners, an institutional fund manager with a niche focus on value-add,
multi-tenant light industrial and small and mid-bay industrial warehouse, has
launched its second institutional fund, BKM Industrial Value Fund II, L.P.,
which will target $300 million in equity commitments, delivering $850 million
in buying power.
The fund, which will invest in the
acquisition, improvement and repositioning of undervalued multi-tenant light
industrial business parks in markets across the Western U.S., comes on the
heels of the closing of BKM’s debut fund for which the firm raised more than
$105 million in fund equity and $30 million in co-investment equity for a total
of $135 million.
BKM Capital Partners was
founded in 2013 by Brian Malliet and
Nima Taghavi who both have 25+ year resumes in the commercial real estate
world.
“There is a disconnect in
the market in our niche asset class that has allowed us to consistently acquire
these properties at a significant discount to replacement cost and peak
pricing,” says Malliet, CEO and Co-Founder of BKM Capital Partners. “We have a
deep pipeline of opportunities, which is why we have more than doubled our
target equity goal for Fund II.”
BKM Capital Partners has
already closed more than $340 million in transactions, recently bringing its
first three Fund I assets full cycle, achieving IRRs above 38-percent on each
asset and multiples ranging from 2.0-2.5.
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“The key to our platform’s
success is our specific focus on multi-tenant light industrial assets, a strict
underwriting discipline with a meaningful amount of margin of safety in all of
our assumptions and an intensely hands on approach with our asset management
and property management,” explains Nima Taghavi, Executive Chairman of BKM
Capital Partners.
Taghavi notes that BKM
Industrial Value Fund II will follow a similar strategy, targeting assets that
provide a significant opportunity for value creation over the fund’s five-year
term.
BKM targets distressed assets that can be
renovated, repositioned, and re-tenanted to drive maximum value. The BKM team
is comprised of professionals with long careers in this product type focused on
performance and strong yields for our investors.
BKM is unique in its
ability to recognize value where others cannot, according to Malliet, who notes
that this characteristic gives BKM insight to a deep pipeline of opportunities
and an advantage over competitors.
“As specialized operators,
we understand what works in these properties, and we know exactly how to
execute,” says Malliet. “Further, our
deep broker relationships enable us to review off-market properties regularly,
giving us the ability to create significant value by acquiring assets well
below replacement cost and peak pricing.”
BKM’s current portfolio
encompasses 18 properties in 4 states including assets in Las Vegas, Seattle,
Oregon, and Phoenix, among others. The firm plans to continue to grow its
portfolio in the Western U.S.
As part of this continued growth of
offices in Seattle, Phoenix, Las Vegas, and California, BKM Capital Partners
has also relocated its headquarters to a recently renovated creative office
building in Newport Beach, California. Previously located in Irvine, the firm
will now be headquartered at 1701 Quail Street, Suite 100, Newport Beach,
California 92660. For BKM, the new office space means improved client service,
new amenities for employees and room for growth.
BKM has nearly tripled in
size in the past year. BKM’s new offices are an open, collaborative space
allowing for a better work environment for current and future staff.
For a complete copy of the company’s news release,
please contact:
Lauren Burgos
Junior Account Executive
Brower, Miller & Cole
895 Dove Street, Third
Floor
Newport Beach, CA 92660
p: (949) 955-7940
or contact Barbara Rea at 949-566-8800.
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