BKM Capital Partners and German American Realty Acquire Fort Lauderdale Industrial Asset for $14M
BKM Capital Partners and German American Realty GmbH have acquired Palm Crossing South, a 61,135-square-foot multi-tenant light industrial property in Fort Lauderdale, Florida, for $14 million. The off-market transaction, which closed September 9, 2026, marks BKM Capital Partners' second acquisition in Florida and its first in the South Florida market. Seagis Property Group was the seller.
Property Details and Acquisition Terms
Located at 3350 NW 53rd Street — within Fort Lauderdale's Commercial Boulevard business corridor — Palm Crossing South comprises two buildings and 14 units with an average suite size of approximately 4,400 square feet. The property was built in 1986 and sits on just over four acres between I-95 and Florida's Turnpike, near U.S. Route 441. At the time of acquisition, the property was 79% occupied.
The asset features 14-foot clear heights, 13 ground-level loading doors, a rear-load configuration, and ample parking. Its current tenant base spans apparel, retail, and entertainment warehousing as well as technology, software, and electronics. The property's configuration is also suited to users in aviation and aerospace, healthcare, manufacturing, marine, and logistics. The purchase price equates to approximately $229 per square foot.
The property's central location allows tenants to serve both Miami-Dade and Palm Beach counties from a single facility. It sits approximately 11 minutes from Fort Lauderdale Executive Airport and 43 minutes from Fort Lauderdale-Hollywood International Airport.
Planned Repositioning as Aero Business Park
BKM Capital Partners plans to rebrand the property as Aero Business Park and implement a targeted capital improvement program. Planned work includes façade, parking, landscaping, and signage upgrades. On the operational side, BKM intends to reduce nearly half of the existing office finish, add loading doors, and reconfigure select units into smaller industrial suites as leases roll. Work on the property's vacant space is expected to begin shortly after closing.
"Opportunities like this rarely come to market in Central Broward, where shallow-bay product with this kind of suite configuration is already hard to find," said Brett Turner, Partner and Managing Director of Acquisitions & Dispositions at BKM. "Sourcing Palm Crossing South off market gave us the time to underwrite it properly. The bones of this property are right. The loading, the parking and the suite sizes all work for the kind of tenants we serve. What it needs is less office and more industrial utility, and that's a business plan we've executed many times."
Brett Turner and Max Stone, BKM's Associate Director of Acquisitions and Dispositions, led the transaction for BKM Capital Partners.
Market Context: Central Broward's Supply Constraints
Broward County posted a 5.4% industrial vacancy rate in the second quarter of 2026, making it Florida's tightest industrial market, according to Cushman & Wakefield. Central Broward, the submarket where Palm Crossing South is located, recorded an even tighter 3.9% vacancy rate during the same period. The submarket recorded no new deliveries during the first half of the year and has no additional space in the development pipeline, leaving limited near-term relief for tenants seeking space. Weighted net rents for Broward industrial averaged $17.67 per square foot annually as of the second quarter of 2026.
"South Florida has the population growth, business formation, and supply constraints that create considerable demand for small-bay space, but a lot of the region's existing inventory was built for a different kind of tenant," said Brian Malliet, Founder, CEO and Chief Investment Officer of BKM. "That gap between what exists and what tenants actually need is where our platform does its best work. Palm Crossing South sits in the middle of the region with access in every direction, and we expect it to be one of several investments we make in this market."
BKM Capital Partners' Florida Expansion
The Fort Lauderdale acquisition is BKM Capital Partners' second in Florida, following a 2025 purchase of a 500,000-square-foot Orlando portfolio. German American Realty GmbH, a Cologne-based investment and fund manager, co-acquired the asset alongside BKM Capital Partners.
BKM Capital Partners focuses exclusively on small- and mid-bay light industrial properties across the United States. The firm's value-add strategy at Aero Business Park — converting excess office space into functional industrial square footage and reconfiguring units to serve smaller tenants — reflects an approach it has applied to similar assets in other markets.
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