Over the past 12 months-plus, Kayne Anderson and BKM Capital Partners have been active in making offensive plays across the industrial sector. Now — the two have taken it to another level — announcing on Wednesday a $1.81 billion acquisition of an 8.5 million-square-foot portfolio. This, according to the two firms, marks the largest trade seen in the light industrial sector since 2022.
The portfolio, which was sold by Blackstone's Link Logistics, consists of 51 total multi-tenant properties, which are located in infill markets in the states of Georgia, California, Washington State and Texas. In total, there are 275 buildings included, with 2,000 units and occupancy averaging roughly 90 percent.
Under the deal, BKM plans to renovate the roofs, exteriors and HVAC systems. Also, the Newport Beach, California-based firm intends to reduce the office build-out in the portfolio by up to 37 percent, while targeting conversion work at certain assets.
The deal now ranks both Kayne and BKM as one of the largest occupiers and owners of multi-tenant light industrial properties — a sector that has been seeing major institutional interest, as of late, according to the companies.
"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," Al Rabil, co-founder and CEO of Kayne, said in a statement.
"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."
Now, the duo's light industrial multi-tenant portfolio combines for around 15 million square feet under management.
Kayne and BKM first announced their $1.5 billion joint venture last May, initially noting they would target both mid and small bay multi-tenant properties. With the dollar amount exceeded in today's transaction alone, it appears the partners have expanded upon that.
The deal comes a month after Kayne raised $5.12 billion through its seventh partners fund vehicle, with the latest installment targeting disruption across commercial real estate.
Some other transactions made under the JV include eight small bay properties that span 889,352 square feet across the Metro Phoenix area and a $550 million recapitalization of a 2.1 million square foot West Coast nine-property portfolio.
A recent BKM Capital Partners report revealed that the small bay segment is becoming a dominant force in the industrial space. Transactions under $100 million represented 73% of total industrial sales in 2025, well above the long-term average of 62 percent.
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