BKM JV Pays $120M for Bay Area Portfolio
The collection encompasses three business parks dating back to the 1980s.
BKM Capital Partners and Kayne Anderson Real Estate have acquired a three-asset industrial portfolio comprising 505,000 square feet across 16 buildings in the San Francisco Bay Area. Link Logistics sold the collection for north of $120 million, San Francisco Business Times reported.
The shallow bay industrial portfolio comprises two campuses in Hayward, Calif.: the 176,056-square-foot Huntwood Business Center and the 82,562-square-foot Hesperian Business Park. Concord Industrial Park, a 245,930-square-foot property in Concord, Calif., rounded up the collection.
The warehouses debuted between 1980 and 1988. Six of them sit along the Interstate 880 corridor, while the remaining 10 buildings are located approximately 31 miles northeast of downtown San Francisco, near the $6 billion Concord Naval Weapons Station redevelopment.
At the time of sale, approximately 28 percent of the buildings’ in-place rents were below market. The portfolio was 89 percent leased to more than 70 tenants with a weighted average lease term of two years, with no single industry comprising more than 20 percent of the rent roll.
The Greater Bay Area’s industrial transaction volume totaled $246 million during the first five months of 2025, according to a recent Yardi Matrix report. Assets traded on average for $144 per square foot, outperforming the national figure of $133. The market’s vacancy rate as of May clocked in at 7.5 percent, 100 basis point below the U.S. index.
BKM Capital’s recent industrial ventures
This acquisition follows BKM Capital and Kayne Anderson’s $1.5 billion partnership announced in May. It also outlines their strategy of investing in metros characterized by strong growth and below-market in-place rents. The duo plans further purchases in the next 18 to 36 months.
BKM Capital had been active in the industrial sector well before reaching that agreement with Kayne Anderson. In March, it paid $156.8 million for a 778,000-square-foot portfolio in Phoenix. Starwood Capital Group sold the light industrial collection.
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