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10/27/16
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BKM Capital Partners bought Andover Executive Park, an eleven-building multi-tenant industrial business park encompassing 181.2k sf of space in the Kent submarket of Tukwila, WA. The asset was acquired in an off-market transaction for $19.8 mil, or $109/sf.
Built in 1974, Andover Executive Park is located at 400-774 Industry Dr, off the intersection of the I-5 and 405 freeways. It is currently 90% occupied with current rents below market value by 10 to 30 percent.
BKM plans to implement a series of capital improvements to the business park, including upgrades to the buildings’ roofs, exterior paint, landscaping, facades and signage, as well as adding creative exterior accents and introducing interior common areas. The improvements are expected to enable the company to attract and retain high quality tenants, drive rent growth for the property over time, and add to the long-term value of the asset.
“The Kent industrial submarket is one of the most dynamic in the entire U.S.,” notes Brian Malliet, CEO and Co-Founder of BKM Capital Partners. “Currently ranked as the third largest industrial market in the country, Kent’s quality market fundamentals continue to dominate the region. Industrial vacancy remains extremely low, net absorption is positive and rents continue to steadily rise.”
CBRE represented the seller, ScanlanKemperBard (SKB), a privately held real estate merchant bank based in Portland, OR. This acquisition comes on the heels of BKM’s acquisition of Tukwila Commerce Center, which is located adjacent to the property and marks the firm’s 18th acquisition in its debut fund.
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