News Summary
BKM Capital Partners has made significant strides in Texas by acquiring two portfolios of light industrial properties totaling 750,000 square feet for nearly $90 million. This expands their portfolio to over 1 million square feet in Texas, highlighting their strategy for growth in high-demand markets. With properties located in key areas including Houston and Dallas-Fort Worth, BKM plans to invest in capital improvements, aiming to enhance the overall value and appeal of their investments.
Texas Sees Major Investment in Light Industrial Properties
Texas continues to attract significant business investment as BKM Capital Partners announces the acquisition of two portfolios of light industrial properties totaling 750,000 square feet for nearly $90 million. This strategic move highlights the state’s thriving market and potential for future growth.
Overview of the Acquisition
The acquisition involves five properties located in key markets: Houston and the Dallas-Fort Worth region. This initiative is part of BKM’s broader strategy to expand nationally by investing in high-growth and supply-constrained markets. The properties were acquired at a substantial discount to their replacement costs, creating a 31% mark-to-market opportunity across both portfolios.
Details of the Houston Properties
In Houston, BKM Capital Partners purchased two adjacent facilities encompassing 242,555 square feet for about $29.5 million. The specific properties included:
- Southwest Business Park: A 131,000 square foot complex with 22 units across three buildings.
- Stonecrest Business Center: Comprising 111,555 square feet, this site includes 17 units spread out over five buildings.
These properties boast strategic locations, situated less than one mile from major thoroughfares including Interstate 69 and Beltway 8, optimizing accessibility for businesses aiming to reach substantial population centers efficiently.
Dallas-Fort Worth Properties
In the Dallas-Fort Worth area, BKM acquired three larger properties totaling 512,000 square feet for $60.3 million. The breakdown of these properties includes:
- Northgate 22: A 34,325 square foot property located in Dallas.
- 501 106th St: A 42,506 square foot site in Arlington.
- Market Street Distribution Center: An extensive five-building complex in Garland covering 435,479 square feet.
Future Development Plans
BKM has also announced plans to invest $10.4 million in capital improvements across these properties. This investment will focus on enhancing curb appeal, addressing maintenance concerns, and implementing a dedicated repositioning program to revitalize these spaces.
Market Conditions
The current vacancy rate in the Houston market stands at 6.2%, with the Southwest submarket showing even lower rates at 5.4%. Notably, of the 17.8 million square feet of new construction underway in Houston, only 2 million square feet is situated in the Southwest submarket, indicating a highly competitive market.
Metro DFW is recognized as the third largest market in the United States, with a total property size of 1.1 billion square feet. In the Northeast Dallas/Garland and Great Southwest/Arlington regions, the vacancy rates are recorded at 7.8% and 6.3% respectively, with 1.2 million square feet of new construction planned.
BKM’s Commitment to Texas
This recent investment raises BKM’s total footprint in Texas to over 1 million square feet. This demonstrates their ongoing commitment to the light industrial sector and to leveraging Texas’s favorable business environment and economic growth prospects. Factors contributing to this positive outlook include rapid population growth, strategic infrastructure investments, and a business-friendly climate.
As business activity surges in Texas, BKM Capital Partners stands poised to take advantage of the opportunities this dynamic market presents. The developments are set to enhance the overall industrial landscape in one of the most economically active states in the nation.
Deeper Dive: News & Info About This Topic
- Realty News Report: BKM Spends $90 Million for Texas Industrial
- Colliers: Houston Industrial Market Update
- San Antonio Express-News: Lovett Industrial Plans $30 Million Logistics Center
- Business Wire: Lovett Industrial Launches Next Phase of 610 Business District
- CoStar: Brookfield Boosts Holdings of Smaller Format Industrial Buildings
Author: STAFF HERE AUSTIN WRITER
The AUSTIN STAFF WRITER represents the experienced team at HEREAustinTX.com, your go-to source for actionable local news and information in Austin, Travis County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as SXSW, Austin City Limits Music Festival, Formula 1 United States Grand Prix, and the Austin Film Festival. Our coverage extends to key organizations like the Greater Austin Chamber of Commerce and Visit Austin, plus leading businesses in technology, automotive, and retail that power the local economy such as Dell Technologies, Tesla, and Apple. As part of the broader HERE network, including HERECollegeStation.com, HEREDallas.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
