BKM Capital Partners, Kayne Anderson Complete $30M Industrial Real Estate Acquisition in San Jose

NEWPORT BEACH, Calif. — December 16, 2025 — BKM Capital Partners and Kayne Anderson have acquired the PacTrust Business Center in San Jose, California, for $30 million, the firms announced. The industrial real estate acquisition, representing a 55% discount to replacement cost, strengthens BKM’s position in Silicon Valley’s light industrial sector. The property will be renamed Montague Exchange.

Industrial Real Estate Acquisition in Silicon Valley

The 94,317-square-foot industrial campus spans seven buildings on 7.3 acres at 780 Montague Expressway in North San Jose’s Golden Triangle submarket. The property includes 38 units averaging 2,508 square feet, 53 grade-level doors, and 285 parking spaces. It is currently 96% leased to tenants in engineering, manufacturing, and technology sectors, according to BKM Capital Partners.

Built in 1982, the property has maintained occupancy above 90% for more than a decade. Nearly one-third of tenants have occupied space for 10 years or more. No single tenant represents more than 5.3% of the total rentable area, which the firm said reduces rollover risk and supports portfolio stability.

Planned Renovations and Value-Add Strategy

BKM Capital Partners plans to renovate Montague Exchange to align with its brand standards and enhance leasing performance. Planned improvements include roof and HVAC replacements, exterior painting, concrete wall repairs, landscaping, parking lot resurfacing, and updated signage. Funds are also allocated for tenant improvements and leasing commissions.

“With more than 20 million square feet converted to other uses over the past decade, Silicon Valley’s light industrial inventory is disappearing faster than it’s being replaced,” said Brett Turner, senior managing director of acquisitions and dispositions at BKM Capital Partners. “This strategic acquisition gives us a high-performing asset in the heart of the Valley’s innovation corridor—offering suite sizes, infrastructure, and a location that are becoming increasingly hard to replicate.”

Transaction Details

PacTrust sold the property, with Cushman & Wakefield serving as the investment sales broker. The transaction was structured as a value-add investment, with BKM Capital Partners serving as general partner and Kayne Anderson Real Estate as limited partner.

Source: BKM Capital Partners