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| Hughes Airport Center, 420-770 Pilot Road and 711-839 Pilot Road, Las Vegas, NV |
LAS
VEGAS, NV – BKM
Capital Partners, an institutional fund manager with a niche focus
on value-add, multi-tenant industrial investments, has acquired $175+ million
in properties through its current “largest in market” acquisition
strategy.
The firm most recently acquired Hughes Airport Center, a 670,902
square-foot, 13-building multi-tenant industrial complex in the Las Vegas
Airport submarket in Nevada.
This transaction closed on the heels of the firm’s recently announced acquisition, through its programmatic joint venture with the Canyon Catalyst Fund, of one of the largest multi-tenant industrial properties of its kind in Silicon Valley - a 14-building, 352,280 square-foot property in the Bayside Business Park in Freemont, California. Together, these acquisitions total more than a million square feet of multi-tenant industrial product.
This transaction closed on the heels of the firm’s recently announced acquisition, through its programmatic joint venture with the Canyon Catalyst Fund, of one of the largest multi-tenant industrial properties of its kind in Silicon Valley - a 14-building, 352,280 square-foot property in the Bayside Business Park in Freemont, California. Together, these acquisitions total more than a million square feet of multi-tenant industrial product.
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| Brian Malliet |
“By acquiring the largest multi-tenant industrial assets in the markets we serve, we are able to devise units to match market demand, which translates directly into high occupancy, resulting in strong stabilized returns for our investors. We continue to seek out light multi-tenant industrial assets throughout the Western U.S.”
Malliet notes that BKM’s most recently
acquired asset - Hughes Airport Center - was acquired at a significant discount
to replacement cost.
“This is a best-in-class asset, the
largest of its scale in the Las Vegas Airport submarket and our firm’s biggest
transactions to date,” says Malliet. “The ability to acquire this
once-in-a-decade opportunity speaks to our team’s tremendous market knowledge,
local network, and expertise in the light multi-tenant industrial sector.”
Hughes Airport Center is the premier
multi-tenant industrial property in the region, and is strategically positioned
to benefit from ongoing growth in Las Vegas, according to Malliet.
“The property is poised to continue
to attract strong tenant demand and serve as a last mile delivery option based
on its unique position directly across from the airport and one block from the
Las Vegas strip,” Malliet notes.
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| Nima Taghavi |
Situated between McCarran International
Airport and the I-215 freeway, the multi-tenant industrial complex consists of
13 buildings. The complex is currently 86.6 percent leased to a diverse range
of tenants across multiple industries.
“The diversification among tenants at this
property limits tenant rollover exposure, which adds to the long-term value of
the asset,” says Malliet. “Further, when we were initially awarded the
acquisition, the property was 79-percent occupied.
"We signed five new leases totaling 54,738 square feet prior to close of escrow. Our ability to increase occupancy in such a short period of time demonstrates the success of our hands-on management platform, which is a key differentiator for our firm.”
"We signed five new leases totaling 54,738 square feet prior to close of escrow. Our ability to increase occupancy in such a short period of time demonstrates the success of our hands-on management platform, which is a key differentiator for our firm.”
BKM manages all of its assets completely
in-house – a rare find in an institutional fund manager, and one that offers
BKM a strategic competitive advantage, according to Brett Turner,
Director of Acquisitions at BKM.
“We find distressed assets in strong
growth markets where we can drive value through property improvements and
integrated, in-house property management,” says Turner. “Because we are so
active in Las Vegas, we will be able to immediately fix operational
inefficiencies as well as invest a significant amount of new capital at the
property, lease remaining vacant space, and increase NOI rapidly.”
BKM owns two multi-tenant parks in Las
Vegas, providing an opportunity to amass economies of scale and drive down
operating costs. The firm plans to implement a series of cosmetic interior and
exterior upgrades to modernize Hughes Airport Center, such as reconfiguring
dysfunctional office units into marketable industrial units totaling 27,771
square feet.
“Our strategy to reconfigure this space
into highly-functional multi-tenant industrial units will allow us to capture
the growing demand for logistically integrated industrial assets as the demand
for same day delivery continues to grow in major markets across the West,” says
Turner. “In doing so, we will be able to quickly lease remaining vacant space,
while steadily increasing rents as the Las Vegas market matures.”
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| Brett Turner |
Hughes Airport Center II is a highly
functional Class A industrial complex with clear heights ranging from 16-24’,
44 dock-high loading doors, and 59 grade-level loading doors. The property is
located at 420-770 Pilot Road and 711-839 Pilot Road in Las Vegas, Nevada.
BKM
Capital Partners, currently raising their second institutional fund, was
founded in 2013 by Brian Malliet and Nima Taghavi. Headquartered
in Newport Beach, California,
For more information, please contact:
Jordan Kruk /Lexi Astfalk
Brower,
Miller & Cole
(949)
955-7940
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