BKM Capital Partners and Kayne Anderson Acquire 400K SF Atlanta Industrial Portfolio in First Georgia Investment

BKM Capital Partners and Kayne Anderson have acquired a six-property light industrial portfolio totaling 400,000 square feet in Atlanta, Georgia. The acquisition represents BKM's first investment in Georgia and second on the East Coast as it continues to expand beyond its Western U.S. roots following entries into Texas and Florida.

The institutional-quality portfolio is 89% occupied and comprises 54 units across eight buildings strategically positioned within Atlanta's infill submarkets. The properties include Rubicon Business Center (117,000 square feet) in Northwest Atlanta, 3400 Corporate Way (60,000 square feet) in Northeast Atlanta, Peachtree Industrial Boulevard (58,000 square feet) in Northeast Atlanta, Young Court (59,000 square feet) in Northeast Atlanta, Cobb International (52,000 square feet) in Northwest Atlanta, and 4938 South Atlanta Road (58,000 square feet) in the Chattahoochee submarket.

Portfolio Details and Market Position

Built primarily in the 1980s, the properties feature masonry construction with clear heights ranging from 16 to 22 feet, 86 dock-high doors, and 23 grade-level doors. The portfolio serves a diverse tenant base spanning food and beverage, logistics services, construction, engineering, and manufacturing sectors.

"Atlanta's small-bay market doesn't offer many opportunities where you can buy real scale in true infill locations," said Brett Turner, Senior Managing Director of Acquisitions & Dispositions at BKM Capital Partners. "What stood out here was the combination of strong occupancy, short lease terms, and buildings that are already functional but could clearly benefit from a more institutional approach to leasing and asset management."

Value-Add Strategy

The portfolio carries a weighted average lease term of 2.7 years, positioning BKM Capital Partners to capture rent growth as leases roll over in the near term. Approximately 65% of the net rentable area is expected to reprice to market, supporting an estimated 18% mark-to-market opportunity.

BKM has allocated significant capital toward a targeted improvement and repositioning program focused on enhancing curb appeal, improving functionality, and accelerating leasing velocity. "This is about doing the basics well," Turner added. "That includes everything from upgrading exteriors, signage and landscaping."

Strategic Expansion

The acquisition marks a strategic geographic expansion for BKM Capital Partners into high-barrier East Coast markets. The firm's entry into Georgia follows investments in Texas and Florida as it diversifies from its Western U.S. base.

The transaction was structured with Kayne Anderson Real Estate as co-general partner. Berkeley Partners and Brookfield Secondaries Group served as sellers, with JLL Capital Markets acting as investment sales broker. Financial terms of the transaction were not disclosed.