BKM Capital Partners, a leading institutional fund manager with a vertically integrated approach, recently completed the acquisition of North Cabot Industrial Park in Hayward for $10.5 million. The purchase price equates to $206 per square foot and was acquired from a nonprofit organization.
Located along the highly sought-after I-880 Corridor in the San Francisco Bay Area, this two-building property is home to multiple tenants and offers great potential for value-add opportunities.
According to Brett Turner, BKM’s Senior Managing Director of Acquisitions and Dispositions: “The Hayward industrial market has historically seen low levels of trading activity but generates significant interest among investors.” He also noted that they were able to secure this infill park at 50% below replacement cost – making it an attractive investment opportunity.
In line with their strategy of enhancing properties through capital improvements, BKM plans on bringing North Cabot Industrial Park up to their brand standards. This includes filling its current 9% vacancy rate by leveraging their leasing team’s expertise and taking advantage of the property’s short WALT (weighted average lease term) which is currently at only 2.3 years – correcting what they see as a significant market deficiency in rents (21%).
BKM represented itself during negotiations while CBRE EVPS Robert Ferraro and Michael Barry along with first VP Ken Morris acted as representatives for the seller.
Overall, this acquisition further solidifies BKM Capital Partners’ position as one of the top players in commercial real estate investments within California.
