Institutional fund manager BKM Capital Partners has closed BKM Industrial Fund II, the firm’s second institutional fund, with $382 million in equity commitments.
The fund had its first close in December 2017 and has attracted investments from a mix of sources including U.S. endowments and pension funds, family offices and insurance companies. The fund is actively being used to acquire large office portfolios in the West, including major purchases in California and Arizona.
“Our niche strategy has been focused on the western U.S., and specifically in the multi-tenant light industrial asset class,” BKM Capital Partners CEO & Co-Founder Brian Malliet told Commercial Property Executive. “Fund II will follow that strategy and is already 46 percent invested throughout those markets. We are now actively targeting markets within the Pacific Northwest as well as Denver to ensure we have geographic diversification for our investors. These regions have undergone tremendous growth over the last several years and will allow us to acquire assets in quality markets.”
Full steam ahead
BKM’s first fund garnered $130 million in commitments—$105 million in fund commitments and $25 million in deployed co-investment capital—and has already been fully deployed.
The company has made big moves over the past year, as the booming industrial sector, led by the continued strength of e-commerce, has shown no signs of slowing down. Over the last 12 months, BKM acquired more than $500 million in assets that encompass more than 3.4 million square feet.
Recent deals include BKM’s acquisition of a Denver industrial property from Mountain West Industrial Properties for $24 million and the purchase of a 703,000-square-foot industrial portfolio in San Diego from Stockbridge Capital Group.