BKM Capital Partners Acquires Santa Clara Industrial Campus for $33 Million from Washington Holdings
NEWPORT BEACH, CA — June 16, 2026 — BKM Capital Partners has acquired Mission Park Business Center, a 94,000-square-foot campus in Santa Clara, California, for $33 million. The seller, Washington Holdings, was advised by Cushman & Wakefield. BKM Capital Partners plans to reposition the office-heavy flex/R&D property into functional light industrial space targeting small- and mid-bay users.
Property Overview and Location
Mission Park Business Center comprises four buildings situated on 7 acres at 1500, 1600, 1700 and 1800 Wyatt Drive in Santa Clara. The campus is located within Silicon Valley's Golden Triangle, a technology and advanced manufacturing corridor. The property is 89% occupied and contains 44 suites averaging 2,100 square feet. Tenants have an average tenure of 6.6 years and operate across semiconductor and electronics manufacturing, technology and software, industrial manufacturing, and laboratory and research uses.
The campus features 47 grade-level doors, 15-foot clear heights, 434 parking spaces, Manufacturing Limited zoning, and substantial power capacity. It sits adjacent to recently developed retail and a 175-key Element hotel, and is located near major firms including Intel, Oracle and NVIDIA. The property has access to U.S. Highway 101, State Route 237, Interstate 880 and Mineta San Jose International Airport.
BKM Capital Partners' Repositioning Strategy
BKM Capital Partners intends to execute a targeted capital improvement program at the campus. Planned upgrades include landscaping, paint, signage, HVAC systems, roofing and parking areas, as well as the conversion of drop-ceiling office space into open warehouse and assembly areas. The firm said the work is expected to reduce office buildout from roughly 70% to approximately 50%. BKM Capital Partners has also allocated capital for speculative tenant improvements and leasing.
"Mission Park has the location, infrastructure, tenant diversity and small-suite configuration we look for, but its office-heavy layout does not fully reflect where demand in Silicon Valley is heading," said Brian Malliet, BKM's Founder, CEO, and Chief Investment Officer. "By repositioning the campus as functional light industrial space, we can better serve the manufacturing, assembly, research, and service users that drive the region's economy."
Brett Turner, Senior Managing Director of Acquisitions at BKM Capital Partners, added: "Mission Park already has much of what small-bay users need: loading, parking, power, flexible suite sizes, and proximity to Silicon Valley's labor and customer base. The opportunity is to add industrial utility within the existing footprint and sharpen the asset's identity for current tenant demand."
Market Context: Silicon Valley Industrial Vacancy
According to Cushman & Wakefield, industrial vacancy in Silicon Valley stood at 6.4% in the first quarter of 2026, compared with 13% for R&D space and 18.8% for office. In Santa Clara specifically, industrial vacancy was 3.9% during the same period. Demand in the region continues to draw on activity in artificial intelligence, semiconductor, advanced manufacturing, electric vehicle, hardware and logistics sectors.
The transaction also reflects longer-term supply dynamics in the region. More than 23 million square feet of single- and two-story light industrial and R&D buildings in Silicon Valley have been demolished or converted to other uses over the past decade, including residential and office development. Additional Santa Clara sites have been identified for residential redevelopment, further constraining the supply of functional small-bay space.
"Replacement cost, land constraints and competing redevelopment pressure have made this product increasingly difficult to replicate," Turner said. "Mission Park sits in a supply-constrained location near one of the country's deepest technical labor pools. We intend to preserve what works and reposition the balance for the market's next generation of users."
Transaction Details
BKM Capital Partners acquired Mission Park Business Center from Washington Holdings. Cushman & Wakefield advised Washington Holdings in the transaction. Brett Turner led the deal for BKM Capital Partners, with support from Michael Grossner, BKM's Senior Director of Acquisitions and Dispositions.