Dallas, TX, December 11, 2025
BKM Capital Partners has made a strategic investment in the Texas industrial real estate market by acquiring a three-property portfolio for $27.5 million. The properties, located in North Dallas and Houston, total over 200,000 square feet and are 98% leased to 64 tenants. With plans for a $2.1 million improvement initiative, BKM is poised to enhance the value of these assets as demand for industrial space continues to grow in the region.
Investors Eye Dallas: BKM Capital Partners Acquires Industrial Portfolio
BKM Capital Partners makes a strategic investment in Texas industrial real estate with a $27.5 million acquisition.
Dallas, TX – BKM Capital Partners has made a significant move in the Texas industrial real estate market by acquiring a three-property industrial portfolio for $27.5 million. This acquisition includes properties located in North Dallas and Houston, showcasing the firm’s commitment to investing in high-demand areas that are well-positioned for future growth.
The portfolio spans over 200,343 square feet, comprising the Great Southwest Business Park in North Dallas, the Royal 35 Business Park in the Great Southwest submarket, and the Kinghurst Business Center in Houston’s Southwest Corridor. Notably, these properties are 98% leased to a mix of 64 diverse tenants, demonstrating robust demand and stability in Texas’s industrial sector.
Strategic Location and Growth Potential
The acquired properties offer strategic benefits, including proximity to major highways, airports, and urban centers within the Texas Triangle. This location provides tenants with exceptional access to consumer markets and labor pools, key factors that enhance the appeal of industrial space in Dallas and Houston. Given Texas’s ongoing population growth, particularly in urban areas, the demand for well-located industrial properties is expected to remain strong.
Upcoming Improvements and Investment Plans
BKM Capital Partners plans to implement a $2.1 million capital improvement initiative aimed at enhancing the properties’ exterior façades, roofs, HVAC systems, signage, landscaping, and targeted interior buildouts. These upgrades are part of the firm’s broader strategy to boost the value and functionality of the properties, reflecting a commitment to maintaining high operational standards and optimizing tenant experiences.
Market Insights: Growing Demand and Rents
Since 2020, Texas has accounted for nearly 22% of net absorption in the U.S., making it a pivotal player in the national industrial market. Dallas-Fort Worth and Houston have each absorbed over 20 million square feet of industrial space, indicating a burgeoning market fueled by entrepreneurial innovation. The sub-100,000-square-foot segment is thriving, consistently outperforming bulk product with vacancy rates for vintage shallow-bay assets trending below 5% since 2012.
Rents in shallow-bay properties significantly reflect this demand; DFW’s South Stemmons and the Great Southwest submarkets have seen rental increases exceeding 25% since 2021. Meanwhile, Houston’s Southwest Corridor has experienced a 27% rise during the same period. These trends suggest a resilient market poised for continued growth as local and regional businesses adapt and expand.
Market Positioning and Future Growth
BKM’s latest acquisition is positioned at a significant discount to replacement costs—43%, which illustrates the potential for high returns in a market that continues to exhibit strong fundamentals. The properties, built between 1981 and 1986, feature modern layouts that align well with the needs of small to midsize tenants, further enhancing their appeal.
The firm’s focus on these high-growth, supply-constrained markets reflects its conviction in the driving fundamentals of small-bay industrial performance across Texas. This investment augments BKM’s Texas footprint to over 1.2 million square feet, reinforcing its strategy to scale nationally amid evolving market dynamics.
Looking Ahead
The Texas Triangle is projected to grow significantly in the coming decades, with expectations of a 65% increase in population over the next 40 years. This anticipated growth will further tighten the demand for industrial space, reinforcing Dallas and Houston’s positions as key economic hubs in the nation. BKM Capital Partners’ strategic acquisition aligns perfectly with this trajectory, aiming to bolster its standing as a leader in the small-bay industrial sector.
Conclusion
The recent acquisition by BKM Capital Partners not only highlights the vibrant industrial real estate landscape in Dallas and Houston but also emphasizes the ongoing opportunities for investors and entrepreneurs alike. With a firm commitment to enhancing the properties and leveraging market demand, this investment serves as a promising indicator for future economic growth in Texas. Support for local businesses and continued investment in infrastructure will be crucial as the state navigates through its dynamic economic landscape.
FAQ
What properties were acquired by BKM Capital Partners?
The acquisition includes the Great Southwest Business Park in North Dallas, Royal 35 Business Park in the Great Southwest submarket, and Kinghurst Business Center in Houston’s Southwest Corridor.
What is the total square footage of the acquired portfolio?
The three-property industrial portfolio totals 200,343 square feet.
What is the leasing status of the properties?
All three properties are 98% leased to 64 diverse tenants, with an average suite size of 2,990 square feet.
How much is BKM Capital Partners investing in improvements?
BKM plans to implement a $2.1 million capital improvement program.
What is the significance of the Texas Triangle in this acquisition?
The Texas Triangle is projected to grow by 65% over the next 40 years, reinforcing the long-term demand fundamentals that make it a compelling industrial market.
| Feature | Details |
|---|---|
| Total Investment | $27.5 million |
| Properties Included | Great Southwest Business Park, Royal 35 Business Park, Kinghurst Business Center |
| Location | Dallas-Fort Worth and Houston |
| Total Square Footage | 200,343 square feet |
| Leasing Status | 98% leased to 64 tenants |
| Average Suite Size | 2,990 square feet |
| Capital Improvement Budget | $2.1 million |
| Projected Growth in Texas Triangle | 65% over the next 40 years |
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