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7/25/25
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BKM Capital Partners and Kayne Anderson Real Estate have acquired a three-property, light industrial portfolio in the San Francisco Bay Area. The transaction marks a significant expansion of the joint venture’s footprint in the East Bay and North Contra Costa County, two of the region’s most supply-constrained submarkets.
Mount Diablo Industrial Park, Concord |
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Totaling approximately 505k sf across 16 buildings and 94 units, the portfolio comprises institutional-quality, light industrial space situated on 34 acres of infill land with exceptional access to regional transportation, major population centers, and a deep, skilled labor pool.
The portfolio is 89% leased to a roster of over 70 tenants with no single industry comprising more than 20% of the rent roll. Unit sizes average just over 5.3k sf, offering high leasing flexibility and catering to a broad mix of regional and national users.
The three assets include Huntwood Business Center, totaling 176.1k sf across three buildings, and the 82.6k sf, three-building Hesperian Business Park, both in Hayward; and Concord Industrial Park, with 245.9k sf across 10 buildings in Concord. The Concord property will be renamed Mount Diablo Industrial Park as part of BKM’s broader repositioning plan.
Built between 1980 and 1988, the portfolio presents a significant near-term income growth opportunity, with approximately 28% of in-place rents below market and a weighted average lease term of just two years. Lease rollovers are staggered, offering stable near-term cash flow alongside the ability to reconstitute the rent roll at higher market rates.
The properties were marketed by CBRE National Partners. Kayne Anderson Real Estate is the real estate investment arm of Kayne Anderson.
“Functional, well-located light industrial product of this scale rarely trades in the Bay Area, so this was a rare opportunity to secure critical mass in two of the most supply-constrained industrial submarkets on the West Coast,” said Brett Turner, Senior Managing Director of Acquisitions & Dispositions at BKM. “The portfolio offers a compelling combination of functionality, tenant diversity, and mark-to-market upside in a region where scale is incredibly difficult to achieve.”
The Bay Area remains one of the most supply-constrained industrial markets in the country. In the East Bay and Contra Costa County, vacancy for small-bay space is trending below 3%, with virtually no new construction of sub-100k sf product due to land scarcity, zoning barriers, and escalating development costs.
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