BKM Capital Partners (BKM) and Kayne Anderson Real Estate, the real estate investment arm of Kayne Anderson, have entered into a $1.5 billion joint venture partnership focused on light industrial real estate.

The $1.5 billion commitment from Kayne Anderson Real Estate will support the acquisition and value-added repositioning of a targeted portfolio of small-bay and mid-bay industrial properties in a sector poised for continued demand.

The joint venture will focus on middle-market properties with below-market rents, high vacancy, and/or operational inefficiencies that can be acquired at a discount to replacement cost and well below peak pricing, and then repositioned to drive value.

With this new partnership, BKM will expand into infill markets across the United States that share common fundamentals — strong population and job growth, constrained new supply, and rising tenant demand driven by logistics, technology and entrepreneurial business formation. BKM ai