BKM Capital Partners, an institutional fund manager, has recently acquired the Canyon Industrial Center for $70.2 million in San Diego’s Kearny Mesa submarket. The industrial park is strategically located near highly populated areas on the West Coast.
During BKM’s planned hold period, 92% of the park’s 46 existing leases are expected to roll over at a rate of one unit per month. To elevate the circa-1979 property from Class B to Class A status, BKM will invest over $1.7 million.
The purchase and transformation of Canyon Industrial Center aligns with San Diego’s growing life science industry and its impact on reducing light industrial inventory in nearby submarkets such as Sorrento Mesa/Sorrento Valley.
According to CEO Brian Malliet, approximately 500 industrial tenants have been displaced from Sorrento Mesa and Sorrento Valley due to this expansion. With no new projects currently underway in these areas and a low vacancy rate of just 2.7% in Central County at year-end, BKM anticipates strong leasing opportunities after completing their improvements at Canyon Industrial Center.
In this transaction, BKM represented itself while Cushman & Wakefield represented the seller – a global investment advisor – through Jeff Cole , Jeff Chiate , and Bryce Aberg . This acquisition marks another step towards Connect CRE ‘s goal of repositioning multi-tenant industrial parks for optimal success.
