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6/17/26
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BKM Capital Partners has acquired Mission Park Business Center, a 94k sf campus in Santa Clara, for $33 mil ($351/sf). The firm plans to reposition the office-heavy flex/R&D property into functional light industrial space for small- and mid-bay users across Silicon Valley’s manufacturing, technology, and research economy.
Located at 1500, 1600, 1700 and 1800 Wyatt Drive, the four-building property sits on seven acres within Silicon Valley’s Golden Triangle, one of the region’s most established technology and advanced manufacturing corridors. The campus is 89% occupied and includes 44 suites averaging 2.1k sf. Tenants have an average tenure of 6.6 years and are concentrated in industries tied to the region’s innovation economy, including semiconductor and electronics manufacturing, technology and software, industrial manufacturing, and laboratory and research uses.
“Mission Park has the location, infrastructure, tenant diversity and small-suite configuration we look for, but its office-heavy layout does not fully reflect where demand in Silicon Valley is heading,” said Brian Malliet, BKM’s Founder, CEO, and Chief Investment Officer. “By repositioning the campus as functional light industrial space, we can better serve the manufacturing, assembly, research, and service users that drive the region’s economy.”
The purchase reflects BKM’s focus on infill assets with strong physical fundamentals that can be repositioned for small and mid-sized industrial users. Mission Park features 47 grade-level doors, 15-foot clear heights, 434 parking spaces, Manufacturing Limited zoning and substantial power capacity.
BKM plans a targeted capital program that includes upgrades to landscaping, paint, signage, HVAC systems, roofing and parking areas, along with the conversion of drop-ceiling office space into open warehouse and assembly areas. The work is expected to reduce office buildout from roughly 70% to 50%; the firm has also allocated capital for speculative tenant improvements and leasing.
The transaction comes as Silicon Valley’s industrial market remains meaningfully tighter than its R&D and office markets. According to Cushman & Wakefield, industrial vacancy in the region was 6.4% in the first quarter of 2026, compared with 13% for R&D and 18.8% for office. In Santa Clara specifically, industrial vacancy was 3.9%. Demand continues to draw on the region’s concentration of artificial intelligence, semiconductor, advanced manufacturing, electric vehicle, hardware and logistics activity.
The deal also reflects the long-term decline in Silicon Valley’s supply of small-bay, single-story industrial and flex product. More than 23 msf of single- and two-story light industrial and R&D buildings in the region have been demolished or converted to other uses over the past decade, including residential and office development. Additional Santa Clara sites have been identified for residential redevelopment, further tightening the supply of functional small-bay space
“Replacement cost, land constraints and competing redevelopment pressure have made this product increasingly difficult to replicate,” Turner said. “Mission Park sits in a supply-constrained location near one of the country’s deepest technical labor pools. We intend to preserve what works and reposition the balance for the market’s next generation of users.”
Mission Park Business Center sits adjacent to recently developed retail and a 175-key Element hotel within a well-maintained business-park setting. The campus also sits near major firms like Intel, Oracle and NVIDIA, with access to U.S. Highway 101, State Route 237, Interstate 880 and Mineta San Jose International Airport.
BKM acquired the property from Washington Holdings, which was advised by Cushman & Wakefield. Brett Turner led the transaction for BKM with support from Michael Grossner, BKM’s Senior Director of Acquisitions and Dispositions.
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