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4/06/23
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BKM Capital Partners has purchased Valley East Industrial Park an 84.4k sf light industrial park in North Hollywood, for $25.3 mil ($300/sf). Situated on over two acres at 7041 Vineland Ave, the park will be renamed Backlot NoHo as part of BKM’s massive repositioning plan.
Located in the heart of the San Fernando Valley, Valley East sits adjacent to the Burbank Airport and is within proximity of the largest concentration of studio production and entertainment operations in the world. The asset was built in 1969 and consists of 36 units across two rear-loading industrial buildings, with an average suite size of 2.4k sf.
BKM is implementing a $6.3 mil capital improvement plan over the first year of its three-year hold period to improve the asset’s performance, costs and efficiency, while adhering to the firm’s ESG standards, and driving new leasing and residual value. The upgrades also call for the reconfiguration and consolidation of some units, to provide larger suites that modern tenants are seeking.
“We continue to acquire value-add small-bay light industrial properties in markets that are strongly positioned to perform over time,” said Brian Malliet, Founder and CEO of BKM. “This market has very limited supply, with vacancy under 2% and continued demand for modern space. This acquisition presents significant opportunities for our experienced team to add value, delivering a cutting-edge asset that will stand out as a leader in the Burbank/North Hollywood light industrial market.”
Valley East Industrial Park’s centralized Los Angeles location provides immediate access to major transportation routes including I-5, I-405 and CA-170, in addition to same-day access to the logistics hubs at the Ports of Los Angeles and Long Beach.
BKM acquired the asset through its third institutional fund, BKM Industrial Value Fund III, LP. Mark Detmer at JLL arranged the transaction on behalf of the seller, LAIS Equities, while BKM represented itself.
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