BKM Capital Partners and Kayne Anderson Real Estate acquire a $1.8 billion portfolio of light industrial assets

Newport Beach, CA BKM Capital Partners (BKM) and Kayne Anderson Real Estate (Kayne), have acquired an 8.5 million s/f portfolio from the Link Logistics portfolio for $1.81 billion. This acquisition will significantly expand the footprint and operating platform of the joint venture between Kayne and BKM across key U.S. markets.

This transaction solidifies the joint venture as one of the largest owner-operators of multi-tenant light industrial assets in the U.S., which, inclusive of this transaction, is now approximately 15 million s/f under management. The portfolio being acquired includes 51 multi-tenant light industrial properties across top-tier infill markets in California, Washington, Texas and Georgia, along with a dedicated operating infrastructure, including eight offices and 40 employees spanning property management, leasing, construction and property accounting.

With this transaction, BKM will have significantly enhanced scale across several of the country’s most important multi-tenant light industrial markets, strengthening its ability to leverage market density, local expertise and operating efficiencies to drive stronger execution and performance across the portfolio. The additions bring BKM to nearly 200 employees in 25 offices nationwide deepening its operating presence in several of the country’s most important small- and mid-bay industrial markets.

“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,” said Al Rabil, co-founder and CEO of Kayne Anderson Real Estate. “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.”

“This acquisition marks the largest addition to BKM’s platform to date and is representative of the strategy we have deployed in the multi-tenant light industrial space for years,” said Brian Malliet, BKM’s founder, CEO and chief investment officer. “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.”

The portfolio is 90% occupied and consists of nearly 2,000 units across 275 buildings, all located in infill submarkets within high-growth markets. BKM’s business plan for the new properties includes targeted exterior upgrades, roof and HVAC work, market-ready improvements for vacant space and selective reconfiguration to reduce office buildout. Overall office buildout target is expected to decline from 37% to 33%, with more significant office conversion work planned at select assets.

Truist Securities served as financial advisor to Kayne Anderson Real Estate.

The seller's brokers were Darla Longo, Joe Cesta and Michael Longo of CBRE