August 18, 2021
Newport Beach, California-based BKM Capital Partners announced it has acquired Fry Distribution Center in Beaverton, Oregon. BKM acquired the property from a private local seller in an off-market transaction for $15.4 million. The transaction was executed through a joint venture with TC US Partners, a real estate investment manager with a primary focus on dynamic growth markets in the United States.
BKM Capital Partners’ Brian Malliet said, “The property has an outstanding historical occupancy, averaging 94% over the past decade. The ability to maintain stabilized occupancy despite ownership’s passive approach to capital improvements is a testament to the asset’s strategic location in a submarket with high barriers to entry and limited competition.”
TC US Partners’ Daniel Grunberg, said, “This transaction represents an important milestone in our partnership with BKM and we are confident on their ability to drive NOI growth by leasing the project at market rental rates and achieve operational efficiencies as a result of the asset’s large local footprint.”
The Fry Distribution Center is a two-building, 121,200-square-foot, multi-tenant industrial park located on 6.4 acres in Beaverton, just west of Portland. The property is strategically located along SR-217, just south of SR-26, providing excellent access to downtown Portland as well as the city’s large corporate anchors along the Sunset Corridor. The property offers 30-foot clear heights in the warehouse and an attractive combination of dock and grade loading, making it one of the best last-mile distribution options along the 217 Corridor.
BKM Capital’s Malliet added, “Additionally, this is a great opportunity to expand and diversify BKM’s Portland portfolio of assets, leverage existing property management infrastructure while closely monitoring the capital repositioning and integration of hands-on operational oversight.”
BKM will leverage its existing management team, which oversees Tigard Business Park, located less than five miles south of Fry Distribution Center. With a vertically integrated and agile approach, BKM’s in-house property and construction managers will oversee structural and cosmetic improvements, including fresh paint, uniform landscaping, tenant/monument/address signage, and modernized awnings. A revamped appearance will reposition the property to outperform the competitive set, while in-place rents are naturally adjusted to market. Additionally, BKM plans to rebrand the asset as Beaverton Industrial Center as part of its multi-faceted capital improvement plan.
Cushman & Wakefield’s Robert F. Buckley represented BKM Capital Partners in the transaction.
About BKM Capital Partners (www.bkmcapitalpartners.com)
BKM Capital Partners was founded in 2013 by Brian Malliet. Headquartered in Newport Beach, California, BKM Capital Partners is a real estate fund manager specializing in the acquisition and improvement of value-add, light industrial, multi-tenant properties in metro areas across the Western U.S. BKM Capital Partners combines a deep knowledge of this niche industrial product type with a vertically-integrated operator platform that includes in-house capabilities to reposition and convert existing assets, enhance property management, incorporate leasing management and institutionalize light industrial properties characterized by fragmented ownership positions. The firm continues to build on its proven track record, generating strong results with high levels of transparency and engagement for investors.
About TC US Partners (www.terracorecap.com)
Founded in 2016, TC US Partners is a real estate investment manager specializing in enterprise and programmatic ventures with a primary focus on dynamic growth markets in the United States. TC US Partners focuses on platform-level investing, whereby it establishes formal agreements to act as a programmatic capital partner to best-in-class operators, with the objective to expand and/or build an institutional-quality real estate portfolio that can perform across market cycles.
BKM Capital Partners
TC US Partners
THE INFORMATION HEREIN IS PROVIDED FOR ILLUSTRATIVE PURPOSES ONLY, MAY NOT BE FULLY INDICATIVE OF ANY PRESENT OR FUTURE INVESTMENTS, MAY BE CHANGED AT THE DISCRETION OF BKM/TC USP WITHOUT NOTICE.
THIS IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY AN INTEREST IN ANY INVESTMENT FUND. SUCH AN OFFER OR SOLICITATION MAY BE MADE ONLY TO ELIGIBLE PURCHASERS PURSUANT TO A CONFIDENTIAL PRIVATE OFFERING MEMORANDUM. THERE CAN BE NO ASSURANCE THAT ANY INVESTMENT PROGRAM WILL ACHIEVE ITS INVESTMENT OBJECTIVES OR THAT LOSSES WILL NOT OCCUR. SOME OF THE STATEMENTS CONTAINED HEREIN CONSTITUTE FORWARD-LOOKING STATEMENTS, WHICH RELATE TO FUTURE EVENTS OR THE FUTURE PERFORMANCE OR FINANCIAL CONDITION OF THIS INVESTMENT. FORWARD-LOOKING STATEMENTS INVOLVE RISKS INCLUDING STATEMENTS AS TO FUTURE OPERATING RESULTS, BUSINESS PROSPECTS, THE FUTURE SUCCESS OF THE GENERAL ECONOMY AND ITS IMPACT ON ANY INVESTMENT.