Aggressive and attentive management, extensive capital improvement program and market intelligence put assets far ahead of underwriting
Las Vegas, Nev. – August 11, 2015 – (RealEstateRama) — BKM Capital Partners, an institutional fund manager with a niche focus on value-add, multi-tenant industrial investments, has announced the completion of 29 leases in three of its Las Vegas industrial assets.
“The Las Vegas industrial market has leapt into action, and our investors are reaping the benefits,” notes Matthew Stephenson, Director of Asset Management for BKM Capital Partners. “When we acquired these assets in 2014, the industrial vacancy rate was approximately 11 percent. At the time, we recognized the potential in the market, and we anticipated that vacancy would tighten rapidly.”
BKM, an investment management firm that specializes in the redevelopment, operation, and ownership of multi-tenant industrial assets throughout the West has proven to have strong instincts in acquisition targets in the current market according to Stephenson.
“One year later, industrial vacancy in Las Vegas has dropped to 6.9 percent,” he says. “By leveraging this market momentum and implementing strategic improvements through aggressive and attentive management in these three properties, we have been successful in attracting tenants that have contributed to rapid growth in value.”
BKM Capital Partners is currently raising a $200 – $300 million fund, through which the firm will invest in multi-tenant industrial assets in metro areas throughout the Western U.S. on behalf of institutional investors.
BKM’s recent leases include:
Ten Leases In Wind River Industrial Complex
Acquired by BKM Capital Partners for $59 per square-foot in October 2014, this 137,715 square-foot multi-tenant industrial building is comprised of 24 suites, and includes an adjacent 1.2-acre parcel of land.
BKM has secured 10 leases for the complex since its acquisition, encompassing 61,175 square feet within the property, and bringing the asset from 71 percent occupied, up to 95 percent occupied within only nine months. Lease value from these efforts is in excess of $2 million over their term.
“The most significant news for this asset is that we have already far surpassed our underwriting for the investment,” explained Stephenson. “We anticipated occupancy of 82 percent at this stage of the asset cycle; however, we are well above that mark. This is good news for our investors, and we anticipate continued growth in performance over the next 12 – 24 months.”
Sixteen Leases in Patrick Commerce Center
BKM Capital Partners has secured 16 leases totaling 119,172 square feet in the Patrick Commerce Center, a 223,009 square-foot industrial business park near McCarran Internal Airport in Las Vegas. Lease value in excess of $4.2 million has resulted from these efforts.
When acquired in May of 2014, the asset’s vacancy rate was at 55 percent. Today, the asset is 86 percent occupied.
Further, while BKM acquired the asset at $68 per square-foot, today’s value for the property is over $100 per square-foot.
“By purchasing this asset at a significant discount to replacement cost and filling the space with strong industrial tenants, we have already built a tremendous amount of property value that will benefit our investors in the long term,” said Stephenson.
Cheyenne Technology Center
This six-building, 172,329 square-foot multi-tenant/industrial park was acquired as a stabilized, cash-flow investment by BKM Capital Partners.
“Long-term credit tenants were already in place when we acquired the property in November of 2014,” explained Stephenson, who noted that BKM acquired the asset with plans to implement significant capital upgrades and transform larger flex units into smaller, more desirable industrial units to increase occupancy and reduce tenant improvement costs.
“We have completed most of the exterior improvements, and we are already outpacing our underwriting on this asset,” Stephenson said. “We anticipated an occupancy of 79 percent at this stage. However, we have already brought the property to 84 percent occupancy.”
Stephenson notes that interior improvements are nearly complete in this asset, and that BKM expects continued leasing at the property as the Las Vegas market continues to tighten.
Headquartered in Irvine, California, BKM Capital Partners is a fund manager specializing in the acquisition and improvement of value-add multi-tenant 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 structured financing, 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.
Brower, Miller & Cole
jquader (at) browermillercole (dot) com