BKM Scoops Up Industrial Business Park In Burbank For $85M

Newport Beach-based investment fund manager BKM Capital Partners has scooped up a 302K SF industrial business park in Burbank for $84.75M.
Courtesy of BKM Capital Partners
Backlot Burbank In Burbank, Calif.

Continuing its strategy of finding value-add multi-tenant light industrial investments, Newport Beach-based investment fund manager BKM Capital Partners has scooped up a 302K SF industrial business park in Burbank for $84.75M.

BKM acquired the Backlot Burbank, a 12-building industrial campus at 4100-4210 West Vanowen Place, 2303-2333 North Valley St. and 4400-4510 West Vanowen St. from a JV of Shubin Nadal Associates and Penwood Real Estate Investment Management.

CBRE's Darla Longo, Barbara Perrier, Dave Harding and Greg Geraci represented the seller.

“We continue to acquire value-add multi-tenant industrial properties in markets that are strongly positioned to perform over time,” BKM Capital Partner’s CEO and co-founder Brian Malliet said in a news release.

“Burbank has a very limited industrial supply, and is the entertainment production epicenter for broadcasting and radio. It is home to major entertainment powerhouses including Warner Bros and Walt Disney,” he said.

In March, the company spent $28.1M for the 161K SF Activity Business Center, a five-building multi-tenant light industrial property in the Miramar submarket of San Diego.

The company said in May that its BKM Industrial Value Fund II is on track to reach its target of $300M raised by the end of this summer.

The recent Burbank purchase fits perfectly in the company's industrial acquisition strategy, Malliet said.

The industrial campus is 100% leased to 16 tenants with unit sizes ranging from 6K to 100K SF. The average unit square footage is 18K. Tenants' rents are 22% below market.

“The fact that the asset is fully-leased will provide immediate stabilized cash flow, allowing us to simultaneously enhance value for investors through our comprehensive value-add approach,” Malliet said.

Malliet said BKM plans a capital improvements project on the property that includes new roofs, paint, signage and other upgrades.

CORRECTION, AUG. 14, 4:00 P.M. PT: A previous version of this story did not name all of the CBRE brokers involved. The story has been updated.

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's Los Angeles Newsletters
Related Stories

DivcoWest Sells Glendale Office Building For $70M

Daniel Negari Buys Downtown LA Hotel For $34M

Stockdale Capital Partners, Hamilton Lane Acquire Chino Hills Shopping Center For $157M

California Emerging As Data Center Fallback Market Amid Nationwide Opposition

Chapman Market Owners Get $29M Refinance: The Los Angeles Deal Sheet

Lineage Suing Solar Company Altus Power Over Boyle Heights Warehouse Fire

HPP, Blackstone Nab Extension On $1.1B Loan Tied To 2.2M SF Hollywood Portfolio

Prologis Acquires 69 Acres For 1M SF Chicago-Area Industrial Development

Stephen Curry Sells Planned HQ Site Near Warriors' Arena

Data Center Demand Has Made IOS An Institutional Capital Playground

How Prologis Conquered The World

'The Box Isn't The Whole Story': Where Phoenix's Industrial Growth Is Heading