BKM Capital Partners Acquires Carson Industrial Center in Los Angeles South Bay for $95 Million

CARSON, Calif. — June 22, 2026 — BKM Capital Partners has acquired Carson Industrial Center, a 429,000-square-foot multi-tenant light industrial campus in Carson, California, for $95 million. The transaction was completed on behalf of BKM Industrial Value Fund III. Cushman & Wakefield represented the seller, described as a global investment advisor, in the deal.

The 11-building campus, situated on more than 20 acres at the southeast corner of Del Amo Boulevard and Tillman Avenue, sits within Los Angeles' South Bay submarket. BKM Capital Partners has rebranded the asset as South Bay Industrial Exchange as part of its repositioning strategy.

Property Details and Physical Characteristics

The campus comprises 20 units with an average unit size of approximately 21,000 square feet. The property features 79 combined dock-high and grade-level doors, clear ceiling heights ranging from 14 to 21 feet, and parking for 651 vehicles. Each of the 11 single-story buildings sits on its own tax parcel, and five are freestanding with private yards and frontage along Del Amo Boulevard.

At the time of acquisition, the property was 73% occupied. The tenant mix includes users in manufacturing, freight logistics, signal and connectivity solutions, luxury handbag distribution, and novelty toy importing.

The implied purchase price equates to approximately $221 per square foot based on the total consideration and rentable square footage. BKM Capital Partners described the acquisition price as representing a significant discount to replacement cost, reflecting repricing that has moved through Southern California industrial over the past two years.

Repositioning Plan and Capital Investment

BKM Capital Partners has allocated more than $6 million toward repositioning the campus. The renovation program will reconfigure and upgrade vacant units, address exterior deferred maintenance, and introduce new signage and landscaping across the property.

"The repricing in Southern California industrial has created real opportunities to acquire well-located assets at a basis that simply wasn't available a few years ago," said Brett Turner, BKM's Senior Managing Director of Acquisitions & Dispositions. "While we remain selective in this market, Carson Industrial Center aligned with several priorities we're focused on today. The campus offers scale, functional small- and mid-bay buildings, immediate leasing upside and a basis that allows us to invest meaningful capital to reposition the property well for the next phase of tenant demand."

Brian Malliet, BKM's Founder, CEO and Chief Investment Officer, highlighted the structural flexibility offered by the parcel configuration. "Our business plan should make Carson Industrial Center competitive for a much broader pool of tenants, including users from Torrance and the surrounding area who want South Bay access but need space that meets today's standards," Malliet said. "The campus also has a structural advantage that is rare at this scale: having each building on its own tax parcel gives us meaningful flexibility as we execute, including the ability to sell individual buildings to owner-users over time if market conditions support it."

Brett Turner, with support from Michael Grossner, Senior Director of Acquisitions & Dispositions, led the BKM team in negotiating the transaction.

South Bay Submarket Context

The South Bay is the largest industrial submarket in Los Angeles at approximately 200 million square feet. At the time of the transaction, the submarket reported a direct vacancy rate of 5.8% and less than 400,000 square feet under construction. The property provides direct access to Interstate 405, Interstate 710, Interstate 91, and Interstate 110 within three miles. It is located approximately 20 minutes from the Ports of Los Angeles and Long Beach, which together form the largest port complex in the Western Hemisphere and serve as the point of entry for roughly 31% of U.S. container trade. BKM Capital Partners noted that this port proximity generates persistent structural demand from importers, third-party logistics providers, and last-mile distributors operating in the South Bay.

The campus is also situated within a 30-minute drive of a population of more than 4.5 million people, according to the firm.

Market Timing and Leasing Conditions

BKM Capital Partners cited improving leasing conditions in the broader Los Angeles industrial market as a factor in its acquisition timing. After several quarters of negative net absorption across Greater Los Angeles, leasing activity reached its highest quarterly velocity in four years in 2025, with the South Bay leading all submarkets, according to the firm. BKM noted that stabilizing vacancy and limited new supply indicate the market is entering a recovery cycle.

BKM Capital Partners operates exclusively within the small- and mid-bay multi-tenant light industrial property type across the United States.

Sources: BKM Capital Partners