Hannover: BKM Capital Partners Acquires Industrial Park in Fremont for $43 Million

Deal News | Jun 17, 2025 | BKM Capital Partners LP

BKM Capital Partners, an institutional fund manager focused on multi-tenant light industrial properties, has announced its acquisition of the Hannover Industrial Park in Fremont, California for $43 million. This off-market transaction was conducted on behalf of BKM Industrial Value Fund III, LP. The strategically located property, which comprises six buildings with nine units over a total area of 165,243 square feet, is situated in the highly sought-after Silicon Valley I-880 Corridor. The asset currently operates at 74% occupancy, offering BKM an opportunity for lease-up and rent increases, expected to realize a 28% mark-to-market over the holding period. BKM plans to invest an additional $1.3 million in upgrades and speculative improvements to boost tenant appeal and drive demand. Senior Managing Director Brett Turner stated that this acquisition was secured through strong sector relationships, and fits BKM's value-add investment strategy aimed at delivering substantial returns. This purchase underscores the appeal of light industrial real estate in supply-constrained areas such as Silicon Valley, emphasizing the competitive property market and strategic importance of the location, given its proximity to major tech companies.

Sectors

Real Estate
Investment Management

Geography

United States – The acquisition occurred in Fremont, California, which is part of the United States, making it relevant to this geography.
California – Fremont is located in Silicon Valley, a region known for its tech-based industries, making California critical to the context of the acquisition.
Silicon Valley – The property's strategic location within the Silicon Valley I-880 Corridor emphasizes the importance of the regional tech and industrial markets.

Industry

Real Estate – The acquisition of industrial park properties, particularly in regions like Silicon Valley, falls under the real estate sector, focusing on property investment and management.
Investment Management – As a fund manager specializing in acquiring and managing institutional-grade properties, BKM Capital Partners operates within the investment management industry.

Financials

$43 million – The purchase price of the Hannover Industrial Park acquired by BKM Capital Partners.
$1.3 million – The planned investment by BKM for capital improvements to reposition the property.

Participants

Name	Role	Type	Description
BKM Capital Partners	Buyer	Company	BKM Capital Partners is an institutional fund manager focused on acquiring and managing multi-tenant light industrial properties.
Unnamed Private Seller	Vendor	Company	The entity from which BKM Capital Partners acquired the Hannover Industrial Park in an off-market transaction.
BKM Industrial Value Fund III, LP	Fund	Company	The specific fund on behalf of which the acquisition of Hannover Industrial Park was made.
Brett Turner	Senior Managing Director of Acquisitions & Dispositions	Person	An executive at BKM Capital Partners who provided insights into the strategic importance and execution of the transaction.