BKM Capital Partners Acquires Bay Area Industrial Park for $72MM

(EDITOR’S NOTE: The sales price on this property was $72 million, or just over $245 per square foot, according to sources familiar with the property. The new ownership of the property declined to comment on the purchase price. The seller of the property was San Francisco-based Prologis, who worked on the listing with CBRE. Multiple people were involved in the sale, including the National Partners West team that includes Rebecca Perlmutter, a first vice president, as well as local Silicon Valley brokers Joe Moriarty and Scott Prosser, both executive vice presidents.)

Bayside Business Park in Fremont, CA Is Third Purchase through Canyon Catalyst Fund

LOS ANGELES, CA – November 27, 2017 – BKM Capital Partners (“BKM”) and Canyon Partners Real Estate LLC® (“Canyon”) announced the acquisition of a 293,505 square-foot multi-tenant industrial portfolio within Bayside Business Park in Fremont, CA. The acquisition is the third investment completed by BKM in 2017 through its programmatic joint venture with the Canyon Catalyst Fund (“CCF”), the CalPERS real estate emerging manager program managed by Canyon.

“Fremont has rapidly grown into the fourth-largest city in the Bay Area as the Silicon Valley continues to push demand north. Today it is home to an increasing number of corporate headquarters, which is driving demand for industrial space by supply chain tenants as well as companies priced out of San Jose,” said Brian Malliet, CEO and co-founder of BKM Capital Partners. “The acquisition of this portfolio plays to our strength as an experienced owner and operator of industrial properties. This portfolio is ideally located and fits perfectly with our strategy of investing in value-add industrial properties in strong markets.”

The 12-building portfolio within Bayside Business Park is located at the corner of Fremont Boulevard and Clipper Court, directly off the I-880 Freeway, the major north-south corridor connecting San Jose to Oakland. The property is 15 miles north of downtown San Jose, 17 miles from the heart of Silicon Valley, and 10 miles south of the Dumbarton Bridge. In addition, it is accessible to public transportation via the recently-opened Bay Area Rapid Transit (BART) Fremont Station. The property is located two miles from The Tesla Factory, one of the world’s most advanced automotive factories with 5.3 million square feet of manufacturing and office space.

“The Fremont industrial market is uniquely positioned to service the large corporate presence in Silicon Valley while providing convenient access to nearby workforce housing communities,” said Brett Turner, Director of Acquisitions at BKM Capital Partners.

The 24.7-acre property is currently 94% leased. Unit sizes range from 1,244 to 10,760 square feet and are available in a variety of configurations which include both grade-level and dock-high loading options. A capital improvement plan will include upgrades to enhance the aesthetic of the property.

About BKM Capital Partners
BKM Capital Partners was founded in 2013 by Brian Malliet and Nima Taghavi. Headquartered in Newport Beach, California, BKM Capital Partners is a fund manager specializing in the acquisition and improvement of value-add multi-tenant light industrial properties in metro areas across the Western U.S. Combining a deep knowledge of this niche industrial product type with in-house capabilities including on-site property management, asset management, and construction management, the firm continues to build on its proven track record, generating strong results with high levels of transparency and engagement for investors. Additional information is available at www.bkmcapitalpartners.com.

About Canyon Partners Real Estate LLC
Canyon Partners Real Estate is the real estate direct investing arm of Canyon Partners, LLC. Founded in 1990, Canyon Partners is an investment management firm headquartered in Los Angeles, with approximately $23 billion of AUM. CPRE focuses on providing value-added and opportunistic equity and debt capital to real estate owners, operators, developers, and lenders. Since inception, through its distinct real estate investment platforms, CPRE has invested over $6.5 billion of capital in over 260 commercial real estate and mortgage transactions with a total capitalization of $17.1 billion. For more information visit: www.canyonpartnersrealestate.com.

About Canyon Catalyst Fund
The Canyon Catalyst Fund is a discretionary separate account managed by Canyon Partners Real Estate (CPRE) on behalf of the California Public Employees’ Retirement System which facilitates investment through the identification of real estate emerging managers with niche strategies, a demonstrated track record and strong potential to access unique investment opportunities. This platform is intended to cultivate the next generation of institutional real estate talent and CPRE, in its capacity as account manager, sources, selects and manages talent, while also maintaining oversight of all platform investments.

West Coast Commercial Real Estate News