BKM Capital Partners and German American Realty GmbH Acquire Post & Paddock Industrial Park in Grand Prairie for $11 Million

BKM Capital Partners and German American Realty GmbH have acquired Post & Paddock Industrial Park, a 78,000-square-foot shallow-bay industrial property in Grand Prairie, Texas, for approximately $11 million, the firms announced July 8, 2026.

The three-building park, located at 1000 Post & Paddock in the Great Southwest submarket of the Dallas-Fort Worth metroplex, was sold by PHP and Caprock. Eliza Bachhuber, Senior Vice President, and Elliott Dow, Senior Associate, of CBRE represented the sellers.

Asset Overview and Transaction Details

Post & Paddock Industrial Park sits on 4.5 acres just off Highway 360, providing access to I-20, I-30 and Loop 12, with connectivity to DFW International Airport. Built in 1984, the property comprises three buildings with 27 units and an average suite size of 2,800 square feet. Industrial specifications include 39 drive-in doors, 16-foot clear heights and approximately 30% office finish.

The acquisition price of approximately $11 million reflects what BKM describes as a below-replacement-cost basis in a submarket where limited land and rising construction costs constrain new development of comparable product.

The property is currently 83% occupied, with no single tenant accounting for more than 7.5% of rentable square footage. The weighted average lease term stands at 1.7 years, creating multiple near-term lease events across the diversified rent roll rather than concentration in a single large rollover.

Brett Turner, BKM's Senior Managing Director of Acquisitions & Dispositions, led the acquisition alongside Charlie Farmer, Director of Acquisitions & Dispositions.

"Functional shallow-bay product at this suite size is genuinely hard to find in an infill submarket like Great Southwest because limited land and rising construction costs make it difficult to replicate," Turner said. "When you find an asset like this trading below replacement cost, especially one with multiple embedded opportunities for incremental growth across the rent roll, it's a straightforward case for putting capital to work."

Value-Add Capital Program Planned

BKM has outlined a targeted capital improvement program for the property. Planned upgrades include façade improvements, parking lot repairs, HVAC and roof work, refreshed paint and landscaping, upgraded building and tenant signage, and spec suite buildouts in currently vacant units. The firm said the improvements are designed to sharpen the property's competitive position while supporting tenant retention and future rent growth.

The announcement noted that the property's shallow-bay configuration aligns with demand from last-mile distributors, light manufacturers and service-oriented businesses seeking flexible, smaller-format infill industrial space.

Great Southwest Submarket Conditions

The Great Southwest submarket recorded an overall vacancy rate of 8.0% at the time of the acquisition, approximately 20 basis points tighter than the broader DFW industrial market. With only approximately 455,000 square feet under construction across the submarket, near-term competitive new supply is limited, according to BKM. Micro-markets immediately surrounding the property are described as tighter than the overall submarket figure.

The property's location between Dallas and Fort Worth provides access to both labor markets, with more than 294,000 workers living within 15 miles. Nearby employment centers include General Motors.

Brian Malliet, BKM's Founder, CEO and Chief Investment Officer, pointed to the market's sustained absorption record as a factor in the firm's continued DFW focus.

"DFW has posted positive industrial absorption for the past fifteen years," Malliet said. "This absorption speaks to something deeper than a cyclical rebound. It reflects a market with durable demand drivers, broad-based economic growth and long-term tailwinds that continue to support small-bay industrial space. A business plan like ours benefits from that kind of backdrop, and it's why we intend to keep growing our exposure in DFW."

Buyer Profiles

Newport Beach, California-based BKM Capital Partners describes itself as a real estate fund manager and operator focused exclusively on small- and mid-bay light industrial properties across the United States. German American Realty GmbH is a Cologne-based investment and fund manager. The two firms partnered on the acquisition.