By Kate Snyder
Two recent sales transactions in the Puget Sound’s industrial market shows that the area is still attractive to investors. In separate deals, three buildings in Federal Way traded hands for a total of $29.5 million, or approximately $587 per square foot, according to King County public records. The seller in both deals was an entity affiliated with Newport Beach-based BKM Capital Partners, and the buyer in both deals were entities affiliated with Los Angeles Iron & Steel Co., based in Yorba Linda.
The three buildings are located at 33721 9th Ave. S, 801 S 336th St. and 34004 9th Ave. S. The building at 33721 9th Ave. S is 15,005 square feet and sits on 3.5 acres, property records show. The 801 S 6th St. building is 16,441 square feet and sits on just over three acres. Both of those buildings were sold in one transaction for $14.4 million. The 34004 9th Ave. S building sits on 5.4 acres and totals approximately 18,741 square feet. It was sold in a separate deal for $15.1 million.
Both the 33721 9th Ave. S and 801 S 6th St. buildings were constructed in 1976 and were previously purchased by BKM in 2019 for a combined total of $8.2 million. The 34004 9th Ave. S was constructed in 1979 and last purchased by BKM in the same year for $6.6 million.
Founded in 2013, BKM Capital Partners is a fund manager and operator of small bay light industrial assets in the western United States, according to the firm’s website. BKM specializes in the acquisition and improvement of value-add light industrial multi-tenant properties in metropolitan areas. Its services include asset, leasing, property and construction management. The firm operates in six states – Arizona, California, Colorado, Nevada, Oregon and Washington — and has 13 offices, more than 90 employees and 2,000 tenants.
“Our experience encompasses financial underwriting, property management, project entitlement, due diligence, planning and design, development, construction, brokerage, all with alignment of the capital and debt structures,” the firm’s website states. “In addition to years of industry experience that contribute to our knowledge and insight, our strong reputation of consistently upholding our fiduciary responsibility to investors, partners, and clients is inherent in our success.”
BKM has been active in the Pacific Northwest in the past six months. The firm purchased the 228,518 square foot Airport Business Center in Portland for $37.3 million, or approximately $163 per square foot, according to previous reporting from The Registry. The 11-building light industrial portfolio is situated in the heart of Portland’s NE/Columbia industrial corridor and was sold by an institutional investor. The property is located at 6756 NE Alderwood Road and 6620-7040 NE 79th Court.
Last year, the company also acquired a 123,664 square foot industrial building in Marysville. The property was purchased for $20.3 million, or about $164 per square foot. The seller in the transaction was an entity affiliated with Pacific Constructors International. The property is located across several addresses which includes 14800, 15000, 14900 and 15100 40th Ave. NE on more than eight acres.
