BKM Capital Partners has expanded its Southern California industrial portfolio with the purchase of Carson Industrial Center in Carson, CA. The multi-tenant industrial campus traded for $95 million and was acquired on behalf of BKM Industrial Value Fund III, the firms discretionary investment vehicle targeting industrial assets.
The Carson Industrial Center totals approximately 429,000 square feet across 11 buildings and is positioned on more than 20 acres in Los Angeles’ South Bay submarket. The property is configured as a multi-tenant industrial campus, giving it exposure to a range of users seeking access to key logistics and distribution corridors in the South Bay.
According to BKM Capital Partners, the campus was acquired at a significant discount to replacement cost. The pricing is described as reflective of the broader repricing that has moved through the Southern California industrial sector over the past two years, as values adjust from peak levels reached earlier in the cycle.
Brett Turner, BKM’s senior managing director of acquisitions and dispositions, noted that the shift in pricing across the region has created opportunities to purchase well-located industrial assets at a basis that was not achievable only a few years ago. The Carson Industrial Center acquisition is positioned as an example of this trend, giving the firm an entry point at what it views as favorable pricing relative to current replacement costs.
BKM founder, CEO and CIO Brian Malliet said the firm’s business plan for Carson Industrial Center is intended to make the campus competitive for a wider range of tenants. He pointed to prospective tenants from Torrance and nearby communities that want South Bay access but require space that aligns with contemporary industrial standards. While specific improvements were not detailed, the strategy is aimed at widening the asset’s tenant appeal within the regional industrial market.
Turner led BKM’s team in negotiating the transaction, working with support from Michael Grossner, the firm’s senior director of acquisitions and dispositions. On the sell side, a global investment advisor was the owner of the property. Cushman & Wakefield represented the seller in the transaction, marketing the campus and arranging the disposition to BKM.
The closing of Carson Industrial Center adds another institutional-quality industrial asset to BKM Industrial Value Fund III’s portfolio and underscores ongoing investor interest in the South Bay industrial submarket, even as pricing adjusts from prior cycle highs.
