BKM Capital Partners caps transformational 2025 with national expansion, surpasses $3b in AUM

Newport Beach, CA BKM Capital Partners (BKM) closed out 2025 with a landmark year of growth and execution that marked a decisive evolution from a regional specialist into a sophisticated national platform within one of commercial real estate’s most dynamic sectors. The firm’s heightened investment activity and strategic initiatives brought total assets under management to more than $3.2 billion across both established Western U.S. markets and newly entered regions, underscoring sustained investor confidence and platform maturity.

Throughout the year, BKM reinforced its position as one of the most active and disciplined operators in the small- and mid-bay industrial sector, completing a series of single-asset and portfolio-scale acquisitions representing nearly six million s/f across 42 properties in six states. Transactions were executed on behalf of BKM Industrial Value Fund III as well as several institutional partnerships, including the firm’s $1.5 billion joint venture with Kayne Anderson Real Estate, said earlier in the year.

“2025 was the year where everything we’ve been building toward came together,” said Brian Malliet, founder, chief executive officer, and chief investment officer of BKM Capital Partners. “We didn’t just grow larger; we became more complete as a platform. From national expansion and institutional partnerships to operational execution and research, every part of the organization scaled in a deliberate way. That discipline allowed us to enter new markets while preserving the performance standards that define BKM.”

Executing a National Growth Strategy
BKM’s 2025 investment activity was defined by measured geographic expansion paired with continued concentration in supply-constrained infill markets. The firm entered Texas and Florida for the first time, scaled rapidly across Houston and Dallas-Fort Worth, and deepened its presence in Phoenix, the San Francisco Bay Area, Seattle, Las Vegas, and Silicon Valley.

After entering Texas in early 2025, BKM quickly ramped up activity, growing its footprint to more than 1.4 million s/f across 11 assets, primarily within Houston’s Southwest submarket and North Dallas. Key Texas acquisitions included:

• West Belt Industrial Park (260,887 s/f)

• Kinghurst Business Center (58,700)

• Northgate 22 (34,325)

• Southwest Business Park (131,000)

• 360 Industrial (42,506)

• Stonecrest Business Center (111,555)

• Market Street Distribution Center (435,479)

• Rockley Road Business Center (58,248)

• Great Southwest Business Park (73,600)

• Fairway Park Business Center (135,571)

• Royal 35 Business Park (68,000)

BKM made its Florida debut as well, establishing an immediate East Coast presence with the acquisition of Gridline Orlando, a five-property portfolio totaling nearly 490,000 s/f in Orlando’s tightly constrained 33^rd St. Corridor.

• Gridline | West Yards (212,463 s/f)

• Gridline | South Row (89,004)

• Gridline | Terminal 46 (80,640)

• Gridline | Core 34 (66,000)

• Gridline | Axis Point (41,784)

Arizona remained a core market for the firm, where BKM expanded its footprint to 4.5 million s/f across Greater Phoenix, with a concentration in the Airport and Tempe submarkets. The new assets included:

• Estrella Distribution Center (331,398 s/f)

• Kyrene Commerceplex (312,403)

• Priest Business Park (155,094)

• Sky Harbor Landing (134,200)

• Expressway Corporate Center (79,333)

• Elwood Industrial Park (133,076)

• Mineral Road Industrial Center (68,693)

• Buttes Business Park (188,282)

• Roeser Commerce Center (59,620)

• Orion Commerce Park (177,354)

• Harl Industrial Center (27,900)

Elsewhere in the Southwest, the firm acquired the 100,392 s/f Cameron Industrial Center and Stadium Industrial Center, a 163,165 s/f asset, both in Las Vegas.

Moving west to Washington state, BKM added the 93,478 s/f Olympic Industrial Park and the 129,677 s/f SeaTac Industrial Park, both in Seattle’s SeaTac area.

The firm also increased its Northern California investments with assets in the Silicon Valley and San Francisco Bay Area. The 165,243 s/f Hannover Industrial Park and 95,317 s/f Montague Exchange are respectively situated in Fremont and North San Jose, while the remaining assets are concentrated in the East Bay:

• Mount Diablo Industrial Park (245,930)

• Huntwood Business Park (176,056)

• Pleasant Hill Industrial Park (104,010)

• Hesperian Business Park (82,562)

Across markets, BKM consistently targeted small- and mid-bay industrial assets characterized by infill locations, limited new supply, diversified tenant rosters, and meaningful mark-to-market rent upside.

“Our sourcing strategy in 2025 was about precision, not pace,” said Brett Turner, senior managing director of acquisitions & dispositions. “We focused on assets and portfolios where operational complexity creates opportunity — this often includes deals sourced via off-market opportunities, some carved out of larger institutional sales, and assets frequently acquired at significant discounts to replacement cost. As we expanded nationally, the goal wasn’t to dilute our thesis, but to apply it consistently in markets where the fundamentals clearly support multi-tenant light industrial demand.”

In addition to the new assets, BKM maintained its disciplined capital recycling strategy, selling and/or recapitalizing six properties in two states totaling 786,000 s/f and valued at $174 million.

Platform Expansion at Institutional Scale
A defining driver of BKM’s 2025 growth was the launch of its $1.5 billion joint venture with Kayne Anderson Real Estate, which provided dedicated institutional capital to accelerate national expansion while remaining firmly aligned with the firm’s value-add strategy. The partnership quickly translated into multiple acquisitions and reinforced BKM’s position as a first-mover institutional platform in the small- and mid-bay industrial sector.

To support this growth, BKM continued investing in talent and infrastructure, expanding its regional footprint and strengthening its acquisitions leadership with the addition of Charlie Farmer as director overseeing investment activity across BKM’s Central and Southeastern markets. The firm also celebrated 29 promotions and hired 40 new members in 2025, expanding its team to more than 135 professionals across 15 offices nationwide, including two new locations in Florida and Texas.

That platform expansion was matched by a high level of operating execution across the portfolio. Over the course of the year, BKM signed 626 leases — an average of 2.5 per business day — and delivered 433 move-in-ready units, maintaining leasing velocity while repositioning assets at scale. The firm also executed more than 1,300 construction contracts totaling $50 million, supporting capital improvements, tenant improvements, and value-add initiatives across newly acquired and legacy assets.

“Growth only creates value if the operating platform can keep pace,” said Mason Waite, senior managing director of asset & portfolio management. “In 2025, our teams were executing business plans across a broader and more diverse portfolio than ever before, driving leasing velocity, managing capital projects, and delivering tenant-ready space at scale. That consistency is what allows us to underwrite steady growth while maintaining downside protection.”

Leadership and Culture, Recognized
BKM’s performance in 2025 was matched by widespread industry recognition across culture and leadership, with the firm and its teams earning 20 awards and honors over the course of the year. It was named to Inc.’s 2025 Best Workplaces and Inc.’s list of Fastest-Growing Private Companies in the Pacific. BKM was also highlighted as a 2025 Industrial Influencer by GlobeSt.com thanks to its role and contributions to the sector.

Individual team members were also honored throughout the year. Susan Rounds, senior managing director of operations, and Koren Mercer, director of design, were named 2025 Women of Influence by GlobeSt.com. Emily Pollard, senior director of marketing & communications, was recognized as one of CRE’s Best Bosses, marking BKM’s fifth consecutive year earning that distinction. C.E. Kaiser, senior director of construction management, was named a 2025 Aspiring Leader, reflecting his innovation in property enhancement and operations.

Rounding out 2025, Brett Turner was profiled as a SoCal Visionary by the Los Angeles Times for his leadership and pioneering work in the multi-tenant light industrial sector.

Shaping the Narrative Around Multi-Tenant Light Industrial
In parallel with its investment activity, BKM expanded its research and thought-leadership platform throughout 2025, releasing quarterly market updates and white papers examining the structural forces reshaping multi-tenant light industrial real estate. Topics included the divergence between small-bay and big-box performance, manufacturing reshoring, the ripple effects of e-commerce, and the firm’s proprietary BKM Intel technology platform.

These insights informed both investment strategy and operational execution, reinforcing BKM’s role as not only an active market participant, but a leading voice shaping institutional understanding of the multi-tenant light industrial sector.

“As we enter 2026, we’re doing so from a position of strength,” Malliet said. “We’ve built a national platform without sacrificing what made us successful in the first place — focus, operational excellence, and a deep understanding of our tenants and markets. The opportunities ahead are significant, and we’re confident in our ability to continue scaling in a way that delivers durable, risk-adjusted returns.”