BKM Capital Partners, Kayne Anderson Real Estate Acquire 543,000-SF Central Orlando Light Industrial Portfolio

ORLANDO, Fla. (Oct. 5, 2026) — BKM Capital Partners and Kayne Anderson Real Estate have acquired a four-property, 543,000-square-foot light industrial portfolio in Central Orlando. The assets sit in the 33rd Street/McLeod and Silver Star corridors and bring BKM's Central Florida holdings to 13 properties totaling more than 1 million square feet.

Rick Brugge, Vice Chair with Cushman & Wakefield, marketed the portfolio on behalf of the seller. Brett Turner, Partner and Managing Director of Acquisitions & Dispositions at BKM, led the acquisition alongside Max Stone, Associate Director of Acquisitions and Dispositions.

Portfolio Details: Seven Buildings, 22 Units

The portfolio comprises seven buildings and 22 units and is 95% occupied, with a 4.3-year weighted average lease term. The buildings have clear heights of 16 to 28 feet and a loading ratio of one position per 4,000 square feet. BKM, which focuses on small- and mid-bay light industrial properties, said two of the four properties will join its Gridline Orlando portfolio while two will operate as standalone assets.

• Gridline | District 4 (formerly 4600-4680 LB McLeod Rd.): three buildings, 208,000 square feet
• Gridline | East Block (formerly 3600 Vineland Rd.): one building, 117,000 square feet
• Bryn Mawr Distribution Center (formerly 3785-3831 Bryn Mawr): two buildings, 121,000 square feet
• Seaboard Industrial Center (formerly 4500 Seaboard Rd.): one building, 97,000 square feet

The McLeod Road property is located at 4600-4680 L.B. McLeod Road in the 33rd Street Industrial Park. Bryn Mawr Distribution Center was developed in 1967 on a 7.4-acre site, and Seaboard Industrial Center, at 4500 Seaboard Road, was developed in 1987 on about five acres.

"We had transacted with this seller before and we already knew this real estate, so we weren't starting diligence from scratch on a portfolio this size," Turner said. "These buildings were originally developed for mid-bay users, which means the specifications run ahead of what small-bay tenants usually get. Twenty-eight-foot clear on select assets is not something you find in this size range, and it is not something anyone is building new."

Expanding BKM's Florida Platform

BKM entered Florida in 2025 with the purchase of five parks in the same submarket, which it rebranded as Gridline Orlando. The latest acquisition expands that portfolio to 11 properties totaling 815,000 square feet across 13 buildings.

"We've spent the past year leasing the Gridline assets a few blocks from these buildings, so this plan is grounded in what we're seeing firsthand," said Mason Waite, Partner and Managing Director of Asset Management at BKM. "Smaller, well-configured suites are moving quickly there and rents have followed, while what is on these rent rolls today sits below that. Reconfiguring larger spaces as they come available is how we close that gap, and running this much space in one submarket means we usually hear about where demand is headed before it reaches the broader market."

Brian Malliet, BKM's Founder, CEO and Chief Investment Officer, said Orlando's industrial market has averaged 5% vacancy and 7% annual rent growth over the past decade, through more than one cycle. "That consistency is why we chose it as our entry point into Florida last year, and a year of operating results has not changed the view," Malliet said. "When a market keeps performing, the right response is to own more of it."

Capital Improvement and Re-Leasing Plan

BKM has developed a capital improvement plan for the assets that includes roof and HVAC replacements, exterior painting, water-efficient landscaping, parking lot repairs and upgraded building and tenant signage. The firm also plans to reconfigure larger spaces as they become available, increasing the unit count across the four properties from 22 to approximately 30 and reducing office buildout.

Submarket Supply and Demand Drivers

The properties have direct access to I-4, Florida's Turnpike, John Young Parkway and State Road 408, placing downtown Orlando and Orlando International Airport in close proximity. The surrounding residential areas, including Windermere, Doctor Phillips, Winter Park and College Park, give last-mile and service-based tenants access to a dense, high-income customer base.

The Silver Star and 33rd Street submarkets together hold 8.7 million square feet across 192 buildings, have recorded no new deliveries since 2022 and have nothing proposed. Neither submarket offers functional dock-high space divisible to roughly 7,500 square feet, and there are no standalone availabilities above 50,000 square feet. These supply figures are company-provided market analysis.

Central Florida's tenant base spans defense, aviation, technology, healthcare, tourism and construction, anchored by more than $8 billion in annual defense contracts and the modeling, simulation and training industry. The metro has added more than 284,000 residents since 2020 and ranks first among the 30 largest U.S. metros for job, population and GDP growth.