BKM Capital Partners picked up a 12-building industrial park for $85 million.
The 302,000-square-foot Backlot Burbank campus is located near Bob Hope Airport on Vanowen Street. It is 100 percent leased to 16 tenants, with rents averaging 22 percent below market rates, according to Bisnow.
The seller was a joint venture of Newport Beach-based Shubin Nadal Associates and Connecticut-based Penwood Real Estate Investment Management.
BKM is based in Newport Beach and is on track to hit its goal of acquiring $300 million worth of industrial real estate by the end of the summer via its BKM Industrial Value Fund II, according to Bisnow. The fund, like the firm overall, is focused on multi-tenant value-add industrial properties in the Western U.S., making the Burbank property a good fit for the portfolio.
BKM has also partnered with the California Public Employees Retirement System through its Canyon Catalyst Fund, which invests in a range of properties.
Burbank has a relatively limited amount of industrial properties, but has some 7 million square feet of office space and regularly sees big deals for properties and office space, especially from entertainment giants.
Warner Brothers renewed its nearly 500,000-square-foot lease at Douglas Emmett’s Studio Plaza building earlier this year. Lincoln Property Company made one of the bigger sales of the year in January when it sold the 338,000-square-foot Connexion Burbank campus to Cerberus Capital for $125 million. [Bisnow] – Dennis Lynch