Kayne Anderson JV Acquires 6-Property Industrial Portfolio
This marks the company’s first Georgia investment.
BKM Capital Partners and Kayne Anderson Real Estate have acquired a six-property light industrial portfolio in Atlanta for $69.5 million.
The partners completed the acquisition through their $1.5 billion partnership formed last May. Berkeley Partners and Brookfield Secondaries Group sold the assets with the assistance of JLL Capital Markets.
The portfolio includes 3400 Corporate Way, Peachtree Industrial Boulevard, Young Court, Rubicon Business Center, Cobb International and 4938 S. Atlanta Road, found across Atlanta’s northwest and northeast submarkets. The assets total 404,424 square feet and are shallow-bay properties with clear heights ranging from 16 to 22 feet, 86 dock-high doors and 23 grade-level doors.
This purchase represents Kayne Anderson’s first Georgia investment as the company continues to expand beyond the West Coast. The average size of the portfolio is 67,404 square feet with space ranging from 52,280 to 116,872 square feet. Most properties were built in the 1980s and feature various tenants.
The tenant roster includes International Insulation Products, Excellent Custom Flooring, Sheffield Office Products and more, according to Yardi Matrix. At the time of purchase, the portfolio was 89 percent occupied. Lease terms across the portfolio average 2.7 years.
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BKM is investing in the portfolio by making capital improvements. Renovations will include replacing roofing and HVAC systems, improving the parking lots, upgrading signage, making exterior enhancements and restructuring vacant and overbuilt office space. Brett Turner, senior managing director of acquisitions and dispositions at BKM, said in prepared remarks that focusing on basic building improvements is especially important for small and midsize tenants.
Atlanta fundamentals remain healthy
Turner noted that the industrial fundamentals in Atlanta were what made this purchase a good investment. According to Yardi Matrix data, the vacancy rate stood at 8.7 percent at the end of October, below the 9.7 percent national average. Deliveries slowed to 5.5 million square feet through October 2025, down from 7.8 million square feet during the same time frame in 2024. The market also had 11.6 million square feet of industrial space under construction, Yardi Matrix also shows.
In nearby Lithia Springs, Ga., CenterPoint Properties purchased a 395,750-square-foot industrial asset for $51.6 million from IDI Logistics. The transaction was announced in September 2025. That same month, Trammell Crow Co. and a consortium led by CBRE Japan began work on a new industrial park in nearby Buford, Ga. When the project is completed in the latter half of 2026, it will span 686,400 square feet.
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