A joint venture between US light industrial real estate specialist BKM Capital Partners and alternative property fund manager Kayne Anderson Real Estate has acquired an 8.5m sqft portfolio from the Link Logistics portfolio for $1.81bn (€1.56bn).
The portfolio has an occupancy rate of approximately 90% and comprises nearly 2,000 units across 275 buildings located in infill submarkets. The assets include a portfolio of 51 multi-tenant light industrial properties situated across infill markets in California, Washington, Texas and Georgia.
BKM said its asset management strategy for the acquired properties involves exterior upgrades, roof and HVAC repairs and improvements to vacant space.
The acquisition also includes an operating platform consisting of eight offices and 40 staff members across property management, leasing, construction and property accounting.
In late 2024, BKM finalised a $550m agreement with Kayne Anderson to recapitalise a nine-property portfolio. The transaction marked Kayne Anderson’s debut in the light industrial sector, expanding its $17bn real estate platform which previously comprised senior and student housing, medical offices, multifamily and self-storage properties.
The latest deal increases the total volume of assets managed by the BKM and Kayne Anderson partnership to approximately 15m sqft.
Al Rabil, co-founder and CEO of Kayne Anderson Real Estate, said: “At Kayne Anderson Real Estate, we continue to focus on sectors where we see durable demand drivers and the opportunity to create value through scale, vertical integration and operational expertise.
“Multi-tenant light industrial remains a highly fragmented segment with compelling fundamentals, and this transaction reflects our conviction in the strategy as well as our ability to partner with leading operators such as BKM to build differentiated platforms in attractive markets.”
Brian Malliet, BKM’s founder, CEO and CIO, said the acquisition marks the largest addition to BKM’s platform to date and is representative of the strategy the firm had deployed in the multi-tenant light industrial space for years.
Malliet added: “It not only underscores the importance of deep operating expertise in this sector but also adds meaningful scale to our platform at a time when institutional interest in the light industrial segment is rapidly accelerating.
“This partnership combines Kayne Anderson Real Estate’s institutional capital and long-term investment perspective with BKM’s disciplined market-by-market execution and integrated, on-the-ground infrastructure that are essential to delivering a stronger day-to-day experience for our tenants and brokers.”
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