BKM Capital Partners and Kayne Anderson Real Estate have announced the acquisition of an 8.5-million-square-foot portfolio from Link Logistics for $1.81 billion, marking the largest light industrial transaction since 2022. The deal significantly expands the joint venture’s footprint across key U.S. markets, solidifying the partnership as one of the largest owner-operators of multi-tenant light industrial assets in the country with approximately 15 million square feet under management. Truist Securities served as financial advisor to Kayne Anderson Real Estate on the transaction.
The acquired portfolio comprises 51 multi-tenant light industrial properties across top-tier infill markets in California, Washington, Texas, and Georgia, along with a dedicated operating infrastructure that includes eight offices and 40 employees spanning property management, leasing, construction, and property accounting. The portfolio is approximately 90% occupied and consists of nearly 2,000 units across 275 buildings, all located in infill submarkets within high-growth markets. BKM’s business plan for the new properties includes targeted exterior upgrades, roof and HVAC work, market-ready improvements for vacant space, and selective reconfiguration to reduce office buildout from approximately 37% to 33%.
The acquisition represents the largest single addition to BKM’s platform since its founding in 2013, bringing the Newport Beach-based firm to nearly 200 employees across 25 offices nationwide and deepening its operating presence across some of the country’s most important small- and mid-bay industrial markets. Since inception, BKM has acquired nearly 40 million square feet of light industrial projects valued at nearly $8 billion. Kayne Anderson Real Estate manages $22 billion in assets under management across opportunistic equity, core equity, and real estate debt, and is part of Kayne Anderson, an approximately $43 billion alternative investment management firm.
The deal comes as institutional interest in the multi-tenant light industrial segment is rapidly accelerating, driven by the highly fragmented nature of the asset class and the durable demand fundamentals that continue to attract capital to infill industrial markets nationwide.
KEY QUOTES:
“Multi-tenant light industrial remains a highly fragmented segment with compelling fundamentals, and this transaction reflects our conviction in the strategy as well as our ability to partner with leading operators such as BKM to build differentiated platforms in attractive markets.”
Al Rabil, Co-Founder and CEO, Kayne Anderson Real Estate
“This acquisition marks the largest addition to BKM’s platform to date and is representative of the strategy we have deployed in the multi-tenant light industrial space for years. It not only underscores the importance of deep operating expertise in this sector but also adds meaningful scale to our platform at a time when institutional interest in the light industrial segment is rapidly accelerating.”
Brian Malliet, Founder, CEO and Chief Investment Officer, BKM Capital Partners
