Texas Sees Major Investment in Light Industrial Properties

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

When it comes to booming business opportunities, Texas is still the place to be! A recent announcement by BKM Capital Partners reveals that they have made a splash in the Lone Star State, acquiring not one, but two portfolios of light industrial properties totaling a whopping 750,000 square feet. With a hefty price tag of nearly $90 million, it’s clear that BKM is serious about investing in this vibrant market.

What’s Included in This Big Deal?

The acquisitions consist of five properties scattered across two key areas: Houston and the Dallas-Fort Worth region. The duo is all part of BKM’s strategy to scale nationally by making smart investments in high-growth and supply-constrained markets. Simply put, they’re seeing great potential in Texas!

Among the newly acquired treasures, one portfolio is based in Houston’s Southwest submarket, while the other sets its sights on the Northeast Dallas and Great Southwest submarkets. What’s more, these properties were snapped up at a significant discount to their replacement costs, offering a 31% mark-to-market opportunity across both portfolios. Talk about a savvy investment move!

Houston’s Highlights

Let’s break it down a bit. In Houston, BKM Capital Partners acquired two adjacent properties, amassing 242,555 square feet for approximately $29.5 million. This impressive set of buildings features:

• Southwest Business Park: A substantial 131,000 square feet divided into 22 units across three buildings.
• Stonecrest Business Center: Totaling 111,555 square feet, this site comprises 17 units spread over five buildings.

These Houston properties offer fantastic access, sitting less than one mile away from major highways like Interstate 69 and Beltway 8. This is golden real estate for any business aiming to reach large population centers quickly.

DFW’s Distinct Offerings

Meanwhile, in the bustling Dallas-Fort Worth area, BKM secured three larger assets, summing up to 512,000 square feet for $60.3 million. Here’s what DFW brings to the table:

• Northgate 22: 34,325 square feet located in Dallas.
• 501 106th St: A 42,506 square foot property in Arlington.
• Market Street Distribution Center: This impressive five-building complex in Garland stretches to an incredible 435,479 square feet.

Future Improvements on the Horizon

But that’s not all! BKM has big plans for these properties, investing $10.4 million in capital improvements. They aim to enhance curb appeal, tackle any maintenance concerns, and implement a dedicated repositioning program that will breathe new life into these spaces. Talk about commitment!

Market Snapshots

As for the Houston market, it currently boasts an overall vacancy rate of 6.2%, with the Southwest submarket holding even stronger at 5.4%. Interestingly, out of 17.8 million square feet of space under construction in Houston, a mere 2 million square feet is in the Southwest submarket, indicating a tight market.

Meanwhile, the Metro DFW area shines as the third largest market in the nation, with a total size of 1.1 billion square feet. The vacancy rates in the Northeast Dallas/Garland and Great Southwest/Arlington regions are notably 7.8% and 6.3%, respectively, with 1.2 million square feet of new construction in the pipeline.

BKM’s Texas Expansion Continues

To cap it all off, this investment brings BKM’s total Texas portfolio to over 1 million square feet. This milestone signifies a strong commitment to growing within the light industrial sector and capitalizing on Texas’s reputation as an economic powerhouse. With so many factors including population growth, infrastructure investments, and a friendly business environment in play, the Lone Star State is truly lighting the way for future investments.

It seems that as the lights turn green for business in Texas, BKM Capital Partners is ready to take off! There’s certainly a lot to watch as this story unfolds.

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