**BKM Capital Partners and Kayne Anderson Launch $1.5B Light Industrial Joint Venture**
BKM Capital Partners has partnered with Kayne Anderson Real Estate to launch a $1.5-billion joint venture focused on light industrial assets. Backed by a $1.5-billion capital commitment from Kayne Anderson, the joint venture aims to facilitate large-scale investments in the light industrial sector and significantly expand BKM’s operations nationwide.
The partnership will primarily target middle-market properties that exhibit characteristics such as below-market rents, high vacancy rates, or operational challenges. The strategy is to acquire these assets at a discount to replacement cost and reposition them for increased value.
“We’ve spent over a decade building an operating platform designed explicitly for small-bay industrial, which is both operationally complex and highly fragmented,” said Brian Malliet, Founder, CEO & CIO of BKM Capital Partners. “With Kayne Anderson’s support, we can now bring that model to scale across new markets with a partner who shares our long-term view.”
While BKM has historically concentrated on the western United States, the joint venture will now extend its reach to infill markets throughout the country. The targeted markets feature similar economic fundamentals—strong population and employment growth, limited new supply, and increasing tenant demand driven by sectors such as logistics, technology, and entrepreneurship.
This strategic move reinforces both firms’ commitment to capitalizing on growth opportunities within the evolving industrial real estate landscape.
