BKM Pays $45M for Tukwila Commerce Center

BKM Tukwila 117, an LLC associated with BKM Capital Partners of Irvine, California, has purchased a 30.3-acre industrial park in Tukwila, Washington for $45.2 million according to King County records. The 27 building industrial park, known as Tukwila Commerce Center, was acquired at a discount to replacement cost and peak pricing, according to Brian Malliet, CEO and Co-Founder of BKM Capital Partners. The property was sold by Icon Tukwila Owner Pool 2, an LLC associated with Global Logistics Properties, in a deal brokered by CBRE. Global Logistics Properties, a Singapore investment and property management company with U.S. headquarters in Chicago, originally acquired the complex in April 2015 for $52.7 million from an affiliate of Walton Street Capital.

The Tukwila Commerce Center industrial park at 601-6699 Strander Blvd. and 800-1164 Industry Dr. in the Kent Valley submarket of Seattle was originally developed in the 1970s. The multi-tenant warehouse/business park buildings totaling 476,765 square feet was 83% leased at the time of sale to over 230 tenants. The 30.3 acre property is considered one of Seattle's premier multi-tenant business parks, with no new construction of this product type in the market, as another hasn't been built since the 1990's. BKM said it plans to invest another $7.9 million on the property, upgrading interiors and exteriors, including common areas.

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BKM Buys $58M AZ Warehouse/Office Portfolio

Irvine, CA-based real estate developer BKM Capital Partners announced this week that it had acquired a five-building property in Tempe, Arizona for $58 million. The Tempe Commerce Park portfolio was sold by Core Fund Tempe Property LLC, a company formed by the Ohio Police & Fire Pension Fund in Columbus, Ohio. BKM purchased the property through BKM Industrial Value Fund I L.P. with a $40 million loan from CIT Bank in Pasadena, California. The deal was brokered by the Phoenix office of JLL, with Invesco Realty Advisors representing the seller.

"The Tempe submarket continues to demonstrate strong economic drivers and is currently one of the most dynamic submarkets in the Phoenix metro," said Brian Malliet, CEO and Co-Founder of BKM Capital Partners, in a press release. "Job and housing growth are on the rise, providing a significant opportunity to create value for our investors. This submarket is also experiencing a significant demand for back office users, which is further driving up lease rates in the business parks throughout the region."

"The asset's prime central location and below-market rents will provide a tremendous opportunity for long-term growth," added BKM Capital Partners' Director of Acquisitions Brett Turner. "As the current tenant leases roll, we will be able to attract high quality tenants who are willing to pay a premium for the property's desirable location and the updated amenities that BKM is planning."

The 535,976 square-foot, five-building property was completed in phases between 1996 – 2001 and is currently 100% occupied. Minutes from Phoenix Sky Harbor Airport and Arizona State University, Tempe Commerce Park offers convenient access to I-10 & Loop-101 freeways in the heart of Tempe within the "Silicon Desert submarket."

For more news and information visit Blumberg Partners.