BKM Capital Invests $31M in San Jose Office-Industrial Site Acquisition
In a recent acquisition, BKM Capital Partners has successfully secured a 119,100-square-foot industrial and office complex located in North San Jose. The purchase was made for a substantial amount of $30.7 million.
According to the San Jose Mercury News, an investor based in Newport Beach has recently acquired the Junction Business Park, which consists of two buildings located at 1911-1943 Hartog Drive and 1914-1968 Junction Avenue. Stockbridge Partners, a Boston-based company, was the seller.
The agreement amounts to $258 per square foot. According to a report in Green Street, the seller of the Junction Business Park is Stockbridge Capital Group, based in San Francisco. The park was listed in August as part of a portfolio of five industrial campuses, totaling 1.9 million square feet.
The exact amount paid by either Stockbridge firm for the property remains undisclosed. In a recent acquisition, BKM has purchased a business complex along with two other industrial parks in Phoenix and Silicon Valley. The total cost of these purchases amounts to $79 million. The deals were made with Stockbridge Capital Group, as reported by Commercial Property Executive.
According to the Mercury News, BKM Capital secured a loan of $20.6 million from First Citizens Bank & Trust during the time of the purchase, as per Santa Clara County public records. A group of brokers from Cushman & Wakefield’s National Industrial Advisory Group, including Will Strong, James Carpenter, Kirk Kuller, Robert Buckley, Tracey Cartledge, Michael Matchett, and Molly Hunt, arranged the deal.
The Junction Business Park, constructed in 1978, comprises of two buildings featuring a total of 16 units. These units vary in size, ranging from 6,200 to 12,700 square feet. A fully leased complex, consisting of 30 percent offices, boasts an impressive industrial capacity. It features 16 grade-level and 14 dock-high loading doors, along with 16-foot clear heights.
BKM is set to invest a whopping $1 million in capital improvements to elevate its standards to Class A. The firm has allocated a substantial amount of $873,000 for tenant upgrades.
Brian Malliet, the CEO of BKM, announced that the company has acquired over 900,000 square feet of space across five properties in Northern California.
In a statement, Mallet expressed that the acquisition of Junction Business Park is in line with their established investment strategy. An attractive light industrial asset has been identified in a prime location, which was acquired at a substantial discount compared to its replacement cost. Our team’s expertise and resources are then utilized to maximize its value.
Last year in May, BKM acquired 35 industrial buildings in Los Angeles, Las Vegas, and Portland, Oregon for a total of $280 million. Spread across 10 light industrial properties, the buildings encompass a total area of over 1.1 million square feet.
According to its website, BKM has successfully completed over $3.2 billion in acquisitions, which included 89 light industrial properties spanning over 16 million square feet. Brian Malliet founded the company in 2013.