BKM, Kayne Anderson JV Pays $1.8B For Light Industrial Portfolio
BKM Capital Partners and Kayne Anderson Real Estate have acquired an 8.5M SF portfolio in what they say is the largest deal in the light industrial sector since 2022.
The companies paid $1.8B for the portfolio from investment firm Link Logistics, according to a Wednesday press release. The acquisition comes about a year after BKM and the real estate investment arm of Kayne Anderson formed a joint venture to target small- and midbay industrial properties.
The acquired assets are 51 multitenant properties across premier infill markets in California, Georgia, Texas and Washington, according to the release. The deal brings the joint venture’s total managed portfolio to 15M SF.
"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," Brian Malliet, BKM CEO and chief investment officer, said in the release.
BKM’s business plan for the assets includes exterior upgrades, HVAC work and improvements in vacant space. The portfolio is roughly 90% occupied.
The overall U.S. industrial market is stabilizing this year as the sector benefits from strong leasing and a slowdown in new supply, according to a first-quarter Cushman & Wakefield report. Vacancy for the first quarter declined 10 basis points from late 2025 to 7%.
The light industrial sector in particular saw renewed momentum in 2026, backed by "resilient small-bay fundamentals, improving capital markets activity, and durable long-term demand drivers," BKM wrote in its first-quarter light industrial market update.
Small-bay buildings under 100K SF posted an average vacancy rate of 4.9% in the fourth quarter of 2025, about 50% lower than the rate for larger buildings, according to BKM’s report. And 80% of all industrial leasing activity in the fourth quarter involved spaces under 50K SF.
