BKM Capital Partners Executes $550 Million Recapitalization with Kayne Anderson

Deal News | Dec 13, 2024 | BKM Capital Partners LP

BKM Capital Partners Executes $550 Million Recapitalization with Kayne Anderson

BKM Capital Partners, a fund manager specializing in value-add light industrial properties, has completed a $550 million recapitalization transaction with Kayne Anderson Real Estate, marking Kayne Anderson's entry into the light industrial sector. The recapitalization involves a nine-property portfolio comprising over 2.1 million square feet and 510 units located in high-density urban areas across the Western U.S. This partnership aims to leverage BKM’s expertise in small-bay real estate investments and presents significant opportunities for growth in rent and value appreciation due to limited new construction in the sector. The properties are spread across Arizona, California, Colorado, Nevada, and Washington. The deal underscores BKM's strategic momentum, adding to its $1.2 billion acquisitions in 2024 alone. Both companies are positive about the growth potential within the industrial sector and aim to explore further joint ventures.

Sectors

  • Real Estate
  • Private Equity

Geography

  • United States – The portfolio includes properties across multiple states in the U.S., specifically Arizona, California, Colorado, Nevada, and Washington.

Industry

  • Real Estate – The participants in the article are involved in real estate investments, particularly focusing on the light industrial sector.
  • Private Equity – BKM Capital Partners and Kayne Anderson Real Estate are institutional fund managers often involved in private equity deals within the real estate sector.

Financials

  • $550 million – The recapitalization deal value for the nine-property portfolio.
  • $1.2 billion – Total acquisitions by BKM Capital Partners in the year 2024.

Participants

NameRoleTypeDescription
BKM Capital PartnersFund Manager and OperatorCompanyA vertically integrated institutional fund manager specializing in value-add light industrial properties.
Kayne Anderson Real EstateInvestorCompanyAn alternative asset manager entering the light industrial sector for the first time through this transaction.
Brian MallietFounder, CEO, CIO of BKMPersonResponsible for BKM's strategic direction and partnership development.
Al RabilCEO of Kayne AndersonPersonCo-founder and CEO, overseeing investments and strategic growth.
Brett TurnerSenior Managing Director of Acquisitions and Dispositions at BKMPersonHandles acquisition and disposition activities at BKM, contributing to the strategic approach of the company.