- Kayne Anderson and BKM Capital have launched a $1.5B joint venture focused on acquiring and repositioning light industrial properties nationwide.
- The partnership targets small- and mid-bay industrial assets, typically ranging from under 200K SF up to 500K SF.
- The venture aims to double BKM’s AUM to $5B within two years, underscoring the growing appeal of the light industrial segment among institutional investors.
A Strategic Pairing
Kayne Anderson Real Estate, a division of the $38B Los Angeles-based investment firm, has formed a new joint venture with BKM Capital Partners, reports The Real Deal. The Newport Beach-based firm will partner on a $1.5B investment in light industrial assets. The focus? Value-add investments in light industrial real estate—a sector both firms describe as high-performing but historically undercapitalized by institutional investors.
Small Format, Big Opportunity
The partnership will target small- and mid-bay buildings, which are typically under 500K SF. These properties are seen as attractive due to their flexibility, lower tenant turnover, and high demand from a wide range of business types. BKM’s CEO Brian Malliet described the move as “transformative,” noting that the firm has spent over a decade building an operating platform specifically tailored for this niche.
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National Scale Expansion
BKM, which has already completed $4.5B in transactions across more than 120 properties since its 2013 founding, said the new partnership enables “large-scale capital deployment” and a significant boost to its national footprint. The firm aims to double its assets under management to $5B in the next two years.
Early Moves
The JV has already made a splash with the acquisition of a 489,981 SF, nine-building light industrial portfolio in Orlando. According to BKM, the deal ranks among the largest of its kind in the Orlando market in recent years.
Why It Matters
Light industrial properties have quietly become one of the strongest-performing real estate sectors, driven by the growth of e-commerce, supply chain decentralization, and the need for last-mile logistics hubs. Yet many institutional investors have largely overlooked this segment—something Kayne Anderson and BKM aim to capitalize on.
What’s Next
As interest in the industrial sector continues to surge, expect more institutional capital to follow. Kayne Anderson and BKM’s aggressive $1.5B commitment may signal a broader revaluation of light industrial real estate’s role in institutional portfolios.
