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Federal Way Industrial Portfolio, a two-property portfolio consisting of 8 buildings totaling 133,595 SF in Federal Way, WA |
FEDERAL WAY, WA,
Aug. 6, 2019 – BKM Capital Partners, an
institutional fund manager with a niche focus on value-add, light industrial
multi-tenant investments, has acquired Federal Way Industrial Portfolio,
a two-property portfolio consisting of eight buildings totaling 133,595 square
feet in Federal Way, Washington.
BKM acquired the
portfolio in an off-market transaction for $14.7 million.
“This was a rare
opportunity to acquire two highly functional business parks strategically
located in metro-Seattle’s tightest industrial submarket,” says BKM Capital
Partners Managing Director of Acquisitions, Brett Turner.
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| Brett Turner |
“With current
occupancy at 75 percent and fundamentals that are poised to drive new
industrial users to the market, there is a clear opportunity to build value in
these assets.”
The multi-tenant
industrial portfolio is strategically located just south of the Kent Valley
industrial submarket off I-5, giving tenants direct access to the Port of
Tacoma.
Turner points to a recently formed
partnership between the Northwest Seaport Alliance and the Port of Seattle as a
key factor in BKM’s value-add strategy.
“This recent
partnership has significantly increased container volumes, which is pushing
tenant demand south,” he explains. “This puts our newly acquired portfolio in a
direct path of growth, which we can leverage to increase occupancy and maximize
performance.”
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| Max White |
“The portfolio
was originally constructed in 1979, and while it is extremely functional, it
has lacked the proper capital investment to modernize the property,” explains
Turner.
“Our plan is to reposition the portfolio as
an institutional grade asset that is aligned with the demands of today’s
tenants which will allow us to quickly lease remaining vacant space, bring
rents up to market, and enhance the long-term value of the property.”
This acquisition
also comes on the heels of BKM recently surpassing $1 billion in AUM. The firm has been extremely active in the light,
multi-tenant industrial space, and continues to expand its portfolio throughout
the western region.
The properties
are located at:
·
34004
– 34016 9th Avenue South
·
33623
– 33799 9th Avenue South and 801 – 815 South 336th Street in Federal Way,
Washington.
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| Nicholas Ratzke |
BKM was
represented by Max White and Nicholas Ratzke with Neil Walter
Company in the off-market acquisition. The seller, a private investor, was also
represented by White and Ratzke.
Contacts:
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