BKM and Canyon buy two industrial properties

BKM Capital Partners and Canyon Partners Real Estate have acquired two Fremont, California-based industrial buildings. No financial terms were disclosed. The properties are based within the Bayside Business Park.


LOS ANGELES, CA – January 22, 2018 – BKM Capital Partners (“BKM”) and Canyon Partners Real Estate LLC® (“Canyon”) announced the acquisition of two additional industrial buildings within Bayside Business Park in Fremont, CA. This acquisition follows the purchase of 12 adjacent multi-tenant buildings in November 2017; together the 14 buildings total 352,280 square feet.

This is the fourth investment — creating an industrial portfolio totaling 648,174 square feet — completed by BKM through its programmatic joint venture with the Canyon Catalyst Fund (“CCF”), the CalPERS real estate emerging manager program managed by Canyon. The CCF BKM partnership specifically targets multi-tenant industrial property acquisitions.

“This acquisition is a natural extension of our original portfolio within the Bayside Business Park,” said Brian Malliet, CEO and co-founder of BKM Capital Partners. “The location is a key benefit of the asset, attractive to entrepreneurial and incubator-type businesses that are flocking to the region.”

The two buildings are located on Fremont Boulevard within Bayside Business Park, directly off the I-880 Freeway, the major north-south corridor connecting San Jose to Oakland. The property is 15 miles north of downtown San Jose, 17 miles from the heart of Silicon Valley, and 10 miles south of the Dumbarton Bridge. In addition, it is accessible to public transportation via the Fremont Station of the Bay Area Rapid Transit (BART) System, which has plans underway to expand to San Jose. The property is located two miles from the Tesla Factory, one of the world’s most advanced automotive factories with 5.3 million square feet of manufacturing and office space.

“As Silicon Valley continues to expand north into Fremont, the industrial market is uniquely positioned for companies seeking to serve the large corporate presence while providing convenient access to nearby workforce housing communities,” said Brett Turner, Director of Acquisitions at BKM Capital Partners.

The two buildings are currently 100% leased, with one multi-tenant building averaging 3,850 square feet per tenant; the other is occupied by BASF Corporation, a German chemical company and the largest chemical producer in the world. A capital improvement plan will include upgrades to enhance the aesthetic of the portfolio.

About BKM Capital Partners
BKM Capital Partners was founded in 2013 by Brian Malliet and Nima Taghavi. Headquartered in Newport Beach, California, BKM Capital Partners is a fund manager specializing in the acquisition and improvement of value-add multi-tenant light industrial properties in metro areas across the Western U.S. Combining a deep knowledge of this niche industrial product type with in-house capabilities including on-site property management, asset management, and construction management, the firm continues to build on its proven track record, generating strong results with high levels of transparency and engagement for investors. Additional information is available at www.bkmcapitalpartners.com.

About Canyon Partners Real Estate LLC
Canyon Partners Real Estate is the real estate direct investing arm of Canyon Partners, LLC. Founded in 1990, Canyon Partners is an investment management firm headquartered in Los Angeles, with approximately $23 billion of AUM. CPRE focuses on providing value-added and opportunistic equity and debt capital to real estate owners, operators, developers, and lenders. Since inception, through its distinct real estate investment platforms, CPRE has invested over $6.7 billion of capital in over 265 commercial real estate and mortgage transactions with a total capitalization of $17.9 billion. For more information visit: www.canyonpartnersrealestate.com.

About Canyon Catalyst Fund
The Canyon Catalyst Fund is a discretionary separate account managed by Canyon Partners Real Estate (CPRE) on behalf of the California Public Employees’ Retirement System which facilitates investment through the identification of real estate emerging managers with niche strategies, a demonstrated track record and strong potential to access unique investment opportunities. This platform is intended to cultivate the next generation of institutional real estate talent and CPRE, in its capacity as account manager, sources, selects and manages talent, while also maintaining oversight of all platform investments.
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