Las Vegas, Nevada,
May 2, 2023
Terracore-BKM Industrial Partners, a vertically integrated light industrial real estate investment platform, has acquired the Decatur Business Center in Las Vegas for $25.9 million. Terry York Properties and Heller Companies sold the 88,205-square-foot light industrial building, located at 5475 S. Decatur Blvd. in Clark County’s southwest submarket.
Decatur Business Center features warehouse, office and showroom space in a two-story concrete tilt-up facility. It is fully leased to five high-credit tenants across a wide range of industries.
The asset was acquired by an investment vehicle managed by Terracore-BKM Industrial Partners, a joint venture partnership between Terracore Capital and BKM Capital Partners.
“This off-market transaction represents yet another step in the expansion of our footprint in strategic, high-growth markets throughout the Western U.S.,” said BKM’s Founder and CEO, Brian Malliet. “It fits right in line with our strategy of acquiring well-built, well-located properties where we can add value through strategic management and thoughtful capital upgrades.”
The property features warehouse space with 32’ minimum clear ceiling heights, high-performance glass skylights, ESFR-capable sprinklers, a common loading dock and 12’ X 14’ grade-level overhead doors and 480v 3-phase power, as well as ample parking.
Built in 2008, Decatur Business Center sits minutes away from the Las Vegas Strip, Interstates 15 and 215 and the Harry Reid International Airport. Proximity to major population centers has made Southern Nevada one of the most sought-after and fastest-growing industrial corridors in the Western US, with rents expected to trend up steadily over the next five years. Terracore-BKM plans to make enhancements to improve landscaping and utility efficiency, creating a cutting-edge space that will appeal to the asset’s sophisticated tenancy.
Newport Beach, CA-based BKM plans to leverage its in-house property management and construction teams to operate the asset and implement capital improvements, creating an enhanced and standardized experience for its tenants.
“Our footprint has grown significantly since 2016, thanks in part to our relationships with trusted operating partners like BKM,” said Terracore’s co-founder, Daniel Grunberg. “This acquisition represents an important milestone in our portfolio construction process; Decatur Business Center will be our first asset in Las Vegas and the ninth acquisition that we complete with BKM”.
To date, Terracore-BKM Industrial Partners has a portfolio of nine assets across Portland, Phoenix, Seattle, and Las Vegas, representing 1.1 M sq. ft. of GLA.
About Terracore Capital
Terracore Capital (previously 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.
Terracore Capital focuses on platform-level investing, whereby it establishes formal agreements to act as a programmatic capital partner to best-in-class operators, to build an institutional-quality real estate portfolio able to perform across market cycles. Additional information is available at terracorecap.com.
About BKM Capital Partners
BKM Capital Partners is a proven real estate fund manager and operator focused exclusively on investing in light industrial and multi-use logistics properties in the Western United States. Headquartered in Newport Beach, CA, with over 90 employees in 13 offices, BKM Capital Partners implements a value-add strategy targeting under-managed and under-capitalized assets. The team has invested in over $2.9 billion of small and mid-bay properties with over 3,000 tenants in 70+ properties since 2013. Its approach includes the acquisition, refurbishment, repositioning, and active management of these industrial properties to drive NOI growth and generate a strong IRR and multiple on invested equity. BKM’s foundation is built upon: Focus; Operational Excellence; Technology; and Client Service. Additional information is available at bkmcp.com
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. THE INFORMATION HEREIN IS PROVIDED FOR ILLUSTRATIVE PURPOSES ONLY, MAY NOT BE FULLY INDICATIVE OF ANY PRESENT OR FUTURE INVESTMENTS, AND MAY BE CHANGED AT THE DISCRETION OF TC WITHOUT NOTICE. REGISTRATION AS AN INVESTMENT ADVISER DOES NOT IMPLY A CERTAIN LEVEL OF SKILL OR TRAINING.