BKM Capital Partners, a leading real estate investment firm, has recently acquired Junction Business Park in San Jose. The property is a multi-tenant light industrial complex consisting of two buildings and spanning over 119,101 square feet. The transaction was valued at $31 million or $260 per square foot.
According to Brett Turner, Senior Managing Director of Acquisitions and Dispositions at BKM Capital Partners, the demand for smaller yet high-quality light industrial assets in San Jose remains scarce despite the city’s significant industrial development in recent years. He further added that their strong financing capabilities allowed them to acquire the property at a substantial discount compared to its replacement cost. With plans for upgrades and strategic leasing initiatives underway, BKM is confident that Junction Business Park will become one of the most sought-after locations for top light industrial tenants.
Currently fully leased with 13 tenants occupying the space, BKM aims to capitalize on an average weighted lease term (WALT) of 2.5 years by addressing an 18% market rent deficiency within their four-year hold period. This acquisition adds over 900
