BKM Capital Partners and StepStone Group have joined forces to complete a $154 million recapitalization of Pacific Business Center, an industrial campus located in the Las Vegas market. The 10-building complex spans over 748,813 square feet and was originally constructed between 1996 and 1998.
The campus, which includes properties at addresses such as American Pacific Drive, Gallagher Crest Road, and Mary Crest Road in Henderson, Nevada is considered Class A space. According to Commercial Edge reports , the majority of the campus is currently occupied by various tenants. However, there is still room for improvement as current rental rates are estimated to be approximately 30 percent below market value.
One major advantage of this industrial center is its designation as a Foreign-Trade Zone. This allows for certain tax benefits that can attract potential tenants or investors.
Since its acquisition by BKM in July of last year from Northwestern Mutual Real Estate for $113 million as part of a portfolio transaction , over $12.4 million has been invested into capital improvements on these assets.
This recent collaboration between BKM Capital Partners and StepStone Group not only showcases their strong partnership but also highlights their ability to identify opportunities for immediate value creation within the commercial real estate industry.
