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| 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.
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| 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.
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| 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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