NEWPORT BEACH, CALIF. AND BOCA RATON, FLA. — BKM Capital Partners and Kayne Anderson Real Estate have acquired an 8.5 million-square-foot light industrial portfolio from Link Logistics for $1.8 billion. The portfolio includes 51 multi-tenant properties across markets in California, Washington, Texas and Georgia.
The deal marks the largest light industrial transaction since 2022, according to the joint venture partners, which now maintain roughly 15 million square feet of multi-tenant light industrial assets under management. The portfolio is approximately 90 percent occupied and consists of nearly 2,000 units across 275 buildings, all located in infill submarkets within high-growth metropolitan areas.
“At Kayne Anderson Real Estate, we continue to focus on sectors where we see durable demand drivers and the opportunity to create value through scale, vertical integration and operational expertise,” says Al Rabil, co-founder and CEO of Kayne Anderson Real Estate. “Multi-tenant light industrial remains a highly fragmented segment with compelling fundamentals.”
“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,” says Brian Malliet, founder, CEO and chief investment officer of BKM. “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.”
BKM’s business plan for the properties includes targeted exterior upgrades, roof and HVAC work, market-ready improvements for vacant space and selective reconfiguration to reduce office build-out. The portfolio’s overall office finish target is expected to decline from 37 percent to 33 percent, with more significant office conversion work planned at select assets. Light industrial buildings are typically smaller in scale than heavy industrial properties and offer flexible spaces for manufacturing and distribution.
Truist Securities served as financial advisor to Kayne Anderson Real Estate, which is part of Boca Raton-based Kayne Anderson, an approximately $43 billion alternative investment management firm. Kayne Anderson Real Estate maintains $22 billion in assets under management with sector expertise in medical office, seniors housing, off-campus student housing, multifamily, self-storage and light industrial.
Since its inception in 2013, Newport Beach-based BKM has acquired nearly 40 million square feet of light industrial projects valued at nearly $8 billion.
— Kristin Harlow