BKM Gets NoHo Business Park as Part of $280M Buying Spree

BKM Capital Partners has paid $280 million for 35 industrial buildings in three states, including an 84,400-square-foot industrial park in L.A.’s San Fernando Valley.

The Newport Beach-based real estate investor bought 10 light industrial properties of more than 1.1 million square feet in Los Angeles, Las Vegas and Portland, Ore., the Commercial Observer reported. The sellers included such firms as Terry York Properties, Heller and LAIS Equities.

The deals include $25.3 million for the 84,400-square-foot Valley East Industrial Park at 7041 Vineland Avenue in North Hollywood. The seller was Yorba Linda-based LAIS. The property fetched $300 per square foot.

The light industrial building, built in 1969, sits on 2 acres next to Hollywood Burbank Airport, a location near entertainment studios and soundstages. After a $6.3 million makeover, it will be

renamed Backlot NoHo, according to BKM.

“Given the extremely competitive sales environment and resulting high prices, capital players are having a hard time finding quality industrial opportunities that pencil out, particularly those with significant value-add potential,” said Brett Turner, BKM’s senior managing director of acquisitions and dispositions.

“Despite concerns over the broader health of the economy and slowdown in commercial real estate, we believe acquisitions like these place BKM in a prime position to capitalize on the continued strength of the industrial sector,” he added.

BKM made most of its buys in Las Vegas. Two off-market deals netted eight properties with 22 buildings and nearly 830,000 square feet near the Las Vegas Strip and Harry Reid International Airport. Terry York Properties and Heller Companies sold the portfolio, which is 98 percent leased. Prices for the Nevada purchases were not disclosed.

In the Pacific Northwest, BKM bought the 11-building Airport Business Center in Portland for $37.3 million. The 228,500-square-foot business park is 92 percent occupied. The price worked out to $163 per square foot. The seller was not disclosed.

Since it was founded by Brian Malliet in 2013, BKM has completed more than $3.1 billion in acquisitions involving more than 15 million square feet across 85 industrial properties with more than 3,500 tenants, according to the Observer. The firm has nearly $2 billion in assets under management.

— Dana Bartholomew