BKM Capital Partners executes $261m fund recapitalization with Investcorp

BKM Capital Partners executed a $261 million recapitalization of its value-add industrial Fund I, expanding a partnership with Investcorp and marking the successful completion of an investment thesis involving the fund manager’s first fund.

The flagship investment vehicle launched in 2013 and is currently comprised of seven multi-tenant industrial assets totaling roughly 1.3 million square feet of space in top-tier industrial markets. A joint venture between Investcorp and BKM Capital Partners acquired the portfolio.

Multi-tenant parks attract a growing entrepreneurial tenant base, cater to numerous users and allow for growth within the park, typically leading to higher tenant retention and a lower risk profile for owners.

The assets held in Fund I encompass five properties in Metro Phoenix and two in Seattle, two core light-industrial markets. The Fund I portfolio houses a diverse tenant base of roughly 450 tenants and is 93 percent leased.

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