LAS VEGAS—BKM Capital Partners has increasedits investment in Las Vegas with the acquisition of twomulti-tenant industrial parks encompassing 309,932 squarefeet of space. The deal expands the fand manager's LasVegas portfolio to over one half-million square feet.

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Currently raising its first commingled fund, BKM CapitalPartners acquired the assets for a total of $27.5million. These acquisitions represent the fourth and fifthinvestments on behalf of the fund, joining properties in Phoenixand Portland, as well as another in Las Vegas.

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“Paramount to our firm's mission as we grow and raiseinstitutional capital is ensuring that each acquisition preciselymeets our defined investment criteria. As we scale up, wemust also stay true to our process,” says BrianMalliet, CEO and Co-Founder of BKM Capital Partners.“Target assets such as Cheyenne and Wind River allow us to do justthat, and our acquisition pipeline is well-stocked with deals suchas these in markets like Las Vegas, upon which we remainbullish.”

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BKM is the only fund manager specifically targeting value-addmulti-tenant industrial properties in the Western U.S., accordingto Malliet, who notes that the firm continues to be active in bothacquisitions and capital-raising, and expects to attract stronginvestor interest based on its specialization and track record.

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BKM's two recent Las Vegas acquisitions are:

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Cheyenne Technology Center

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This six-building, 172,329 square-foot Cheyenne TechnologyCenter is an office and flex/industrial park presenting a uniqueinvestment opportunity for BKM Capital Partners' investors,according to BKM's Director of Acquisitions, BrettTurner.

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“The property's current configuration demonstrated a tremendousopportunity for growth,” Turner says. “With major long-termcredit tenants in place to provide substantial cash flow during thestabilization phase, BKM will employ significant capital upgradesin the first year of ownership to transition larger flex units intosmaller, more desirable industrial units to increase occupancy andreduce tenant improvement costs, while making cosmetic exteriorimprovements such as paint, signage, landscaping, etc.”

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BKM also plans to employ a new property management team toimprove tenant acquisition and turnover time, and to launch arenewed leasing effort that will reintroduce the property to themarket.

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BKM acquired the property for a total of $18.415million, or $107 per square-foot.

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BKM Capital Partners represented itself in the propertyacquisition. The seller, Voit Real EstateServices, was represented by KevinHiggins and Garrett Toft of Voit RealEstate Services. The property is located at 3355-3675 West CheyenneAvenue in North Las Vegas, Nevada.

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Wind River Industrial Complex

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The 137,603 square-foot Wind River IndustrialComplex presents BKM Capital Partners with the opportunityto acquire and rehabilitate a property that is distressed due tolack of hands-on asset management, according to Turner.

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“This is a strong property in a highly desirable location. Based on the property's deferred maintenance and low occupancy, wewere able to achieve a significant reduction in purchase price,acquiring the asset at a deep discount to replacement cost,” Turnerexplains.

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BKM Capital Partners acquired the property for $9.1million, or $59 per square-foot.

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“Deals of this nature are extremely hard to find in the currentmarket, and require a specialized understanding of the multi-tenantindustrial market niche,” Turner continues.

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Located in the popular Southwest submarket, adjacent to thePalms Hotel and one mile from the Las Vegas Strip, the multi-tenantmasonry industrial building is comprised of 24 suites, and includesan adjacent 1.2-acre parcel of land.

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“The most profitable strategy for this asset is to implementboth structural and cosmetic improvements to enhance the property'sappeal and positioning in the market,” Turner says. “BKM willimplement this strategy with characteristic alacrity to drive theasset's performance.”

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BKM Capital Partners represented itself in the propertyacquisition. The seller, a local private family, was represented byHiggins and Toft of Voit Real Estate Services. The property islocated at 4301-4325 South Valley View Boulevard in Las Vegas,Nevada.

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Los Angeles-based George Smith Partnersarranged a total of $23.5 million in acquisition bridge financingfor BKM Capital Partners for the acquisition of both properties.The bridge loan provides BKM a three-year term to execute itsbusiness plan of repositioning, renovating and leasing up theproperties. Gary Mozer, of George Smith Partners,arranged the financing, and was assisted by MichaelAnderson, Katie Rodd, and Kyle Howerton,also of George Smith Partners.

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Headquartered in Irvine, CA, BKM Capital Partners is a fundmanager specializing in the acquisition and improvement ofvalue-add multi-tenant industrial properties in metro areas acrossthe Western U.S.

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David Phillips

David Phillips is a Chicago-based freelance writer and consultant with more than 20 years experience in business and community news. He also has extensive reporting experience in the food manufacturing industry for national trade publications.