US light industrial real estate fund manager BKM Capital Partners has finalised a $550m (€525m) agreement with Kayne Anderson Real Estate to recapitalise a portfolio of nine properties.
The transaction marks Kayne Anderson Real Estate’s entry into the light industrial sector, expanding its $17bn real estate portfolio which includes senior and student housing, medical offices, multifamily housing and self-storage.
Al Rabil, Kayne Anderson Real Estate co-founder and CEO, said: “At Kayne Anderson Real Estate, we have always sought to invest in asset classes, such as medical office, seniors housing and student housing, which exhibit powerful fundamentals and allow us to leverage our platform’s sophistication and scale.
“We see immense opportunity in the light industrial market, and we’re thrilled to enter this asset class with an established partner in BKM.”
Brian Malliet, founder, CEO and CIO of BKM, said: “By combining our deep expertise in small-bay real estate investments with the support of a respected investment manager in Kayne Anderson, we are unlocking exceptional opportunities for growth.
“We hope this will be the first of many transactions with Kayne as we continue our long-term growth trajectory and execute on our unwavering commitment to creating sustainable value for our investors and partners. We are excited about the possibilities the future holds.”
The nine-property portfolio consists of 510 units and over 2.1m sqft of small-bay industrial space located in high-density urban areas throughout the Western US.
Brett Turner, senior MD of acquisitions and dispositions at BKM, said: “As growth in the industrial sector continues to outperform market expectations, these assets have delivered exceptional returns thanks to our team’s strategic approach.
“With ongoing demand for small-bay industrial properties and strong historical rent growth trends, we see significant future potential, which our institutional management expertise is well-positioned to fully unlock.”
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