BKM Capital Partners purchased a three-property industrial portfolio totaling 200,300 s.f. in Dallas/Fort Worth and Houston for $27.5M. The deal, completed at a 43% discount to replacement cost, strengthens BKM’s position as a national leader in the small-bay industrial sector.
Property: Industrial Portfolio in Texas
Price: $27.5M
Seller: Circle Industrial
Buyer: BKM Capital Partners
The portfolio includes 11 buildings and a total of 67 units. The assets are in high-growth submarkets and are 98% leased to diverse tenants. Average unit size is just under 3,000 s.f., with clear heights of 14 to 18 feet and 87 loading doors. Originally built between 1981 and 1986, the properties offer functional layouts for small to midsize users.
Property details: Great Southwest Business Park in North Dallas: 73,600 s.f., 30 units, five buildings; Royal 35 Business Park in Dallas: 68,000 s.f., 24 units, four buildings; Kinghurst Business Center in the Houston: 58,700 s.f., 13 units, two buildings.
BKM will invest $2.1M in upgrades, including exterior façades, roofs, HVAC, signage, landscaping and targeted interior buildouts. With a weighted average lease term (WALT) of two years, the firm expects to capture a 26% mark-to-market opportunity in rents.
“The industrial sector may be absorbing new supply, but with almost 99% of the Dallas/Fort Worth and Houston pipeline dedicated to large facilities, none of it is built for the sub-10,000-s.f. user,” said Brett Turner, senior managing director of acquisitions and dispositions at BKM. “This portfolio fills that void with proven product in submarkets where shallow-bay assets have outperformed the market for over a decade.”
