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6/18/25
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BKM Capital Partners (BKM) has purchased Hannover Industrial Park, a 165.2k sf industrial park in Fremont, for $43 mil ($260/sf) in an off-market transaction. The property, located in Silicon Valley’s high-demand I-880 Corridor, was acquired on behalf of BKM Industrial Value Fund III LP.
Located at 4755–4900 Hannover Place and 43777 and 43815 S Grimmer Blvd, the park consists of six buildings housing nine units with an average size of 18.4k sf. It features a 14% overall office component as well as a secured 67k sf paved yard, found in less than 3% of the region’s industrial product. At 74% occupancy, the project presents an opportunity to lease-up about a quarter of the net rentable area and recapture approximately 28% mark-to-market on in-place rents over the hold period.
BKM plans to invest $1.3 mil in targeted capital improvements to reposition the property and drive tenant demand, including exterior paint, signage, landscaping upgrades, LED warehouse lighting, and speculative tenant improvements for the three vacant suites. The business plan also includes re-leasing and renewing key tenancy at market rents. With a 3.0-year weighted average lease term, the property offers near-term upside with limited downside exposure.
Considered the “Hardware Side of the Bay Area,” Fremont is home to more than 900 manufacturing and hardware companies the region and represents a key component of the supply chain servicing Silicon Valley’s software industry. The property’s location within the submarket—which has a sub-6% industrial vacancy and limited new construction—offers exceptional proximity to major logistics and employment hubs, including the nearby Tesla factory, Seagate, Facebook, and Google.
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