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| Brian Malliet |
ORANGE COUNTY, CA – BKM Capital Partners,
an institutional fund manager with a niche focus on value-add, light
multi-tenant industrial investments, has announced the final close of its
second institutional fund, BKM Industrial Value Fund II, L.P., with
$382 million in equity commitments.
In addition to
$289.4 million of equity commitments to the fund and parallel vehicles, BKM has
invested a further $54.1 million of Fund II LP co-investment capital and has up
to an additional $38 million of committed non-discretionary LP co-investment
capital to deploy into this strategy. Together, this equates to more than $1
billion in buying power.
Building on
the success of the firm’s debut fund,
which garnered $130 million in commitments (consisting of $105 million in fund
commitments and $25 million in deployed co-investment capital) and is already
fully deployed, BKM’s Fund II will invest in undervalued light multi-tenant
industrial assets in strong growth markets throughout the Western U.S.
Nima Taghavi, Co-Founder & Executive Chairman of
BKM Capital Partners, explains “Closing our fundraising period marks a
meaningful milestone for our firm.
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| Nima Taghavi |
"We have made significant investments since founding
BKM to build out an operating platform with both asset management and property
management businesses.
"As a testament to our platform and to us as fiduciaries,
we have evolved from a first-time fund manager with two institutional investors
to our second fund and now having more than 20 institutional investors.”
BKM’s Fund II garnered
investments from a mix of institutional investment sources, including U.S.
endowments and pensions funds, family offices, and insurance companies.
The fund, which had a first
close in December 2017, is already being deployed into large business park
portfolios throughout the Western U.S., including major acquisitions in
California and Arizona, among others.
“BKM’s ability to more than
double our fund investments in less than 24 months speaks to the depth of our
expertise in this product type,” says Brian Malliet, Co-Founder and CEO
of BKM Capital Partners.
“We
recognized the opportunity in light multi-tenant industrial early on and
understood that this very specific property type was poised to grow faster than
other industrial product.
"Today, fueled by healthy demand and tight supply,
light multi-tenant industrial is on track to be one of the best-performing
commercial real estate segments in 2019.”
Powered by demand drivers
including ongoing e-commerce growth, changing consumer preferences, and a
resurgence of small businesses in need of space, light multi-tenant industrial
has also emerged as a key investment target for institutions.
“Today’s institutions are
seeking investments that are strategically positioned to perform well for the
long term,” Malliet says. “By honing our first-hand expertise in the
acquisition, improvement, and operation of these assets, we now have a proven
investment platform through which these institutions can achieve strong
long-term growth while earning consistent risk-adjusted returns.”
“We are one of the only
operators in the market with the experience and financial strength needed to
acquire and profitably operate large portfolios of multi-tenant industrial
product,” says Malliet. “In this endeavor, our track record speaks for itself.”
BKM is one of the largest
owners of multi-tenant industrial portfolios in the Western U.S., with
portfolio acquisitions totaling more than $500 million and encompassing more
than 3.4 million square feet in the past year alone.
The firm owns and operates
properties in six states, including California, Colorado, Nevada, Washington,
Oregon, and Arizona.
“Although we are excited about
the continued interest in our investment strategy and our team’s ability to
execute on that strategy, we remain focused and disciplined on investments that
provide our investors with an adequate “margin of safety” in order to protect
the downside,” according to Taghavi.
While many real estate
companies may find it difficult to identify properties that fit their
investment criteria, we have a competitive advantage in our markets based on
our position as the most active buyer within this product type. This track
record will fuel our growth for years to come,” says Taghavi.
BKM Capital Partners currently manages over 6.9 million square feet totaling
more than $1 billion in assets under management.
Additional information is available at www.bkmcapitalpartners.com.
Contacts:
Alex Caswell / Lexi Astfalk
Brower Group
(949) 438-6262
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