BKM Capital Partners, Kayne Anderson Real Estate Buy Sandy Springs Industrial Campus for $100 Million

BKM Capital Partners and Kayne Anderson Real Estate have acquired Northridge Commons, a 471,000-square-foot industrial campus in Sandy Springs, Georgia, for $100 million, the firms announced Oct. 12. The seller was Third & Urban. The purchase brings BKM Capital Partners' Metro Atlanta holdings to approximately 1.5 million square feet, less than a year after the firm entered the market.

The price equates to roughly $212 per square foot.

Northridge Commons Property Details

Northridge Commons comprises seven single-story, multi-tenant buildings on about 38 acres along the GA-400 corridor in North Fulton County. The campus is located at 8601 Dunwoody Place in Sandy Springs. The buildings were constructed between 1981 and 1982 and were originally developed as a shallow-bay industrial park.

Suites range from 2,046 to 39,221 square feet, averaging 7,849 square feet. The buildings have clear heights of 14 to 19 feet, 18 dock-high doors, 80 grade-level doors and rear-load configurations. The campus is 90% leased, with tenants in logistics, healthcare, life sciences, construction and food and beverage.

The property is about three miles from I-285, providing connectivity to Atlanta's I-75 and I-85 industrial corridors and to Downtown Atlanta. It sits within North Fulton County's "Golden Corridor," near the housing, labor force and customer base in Sandy Springs, Dunwoody, Alpharetta, Roswell, Milton and Johns Creek, where median household incomes range from $124,000 to $171,000, according to the announcement.

Off-Market Deal Sourced Through Leasing Relationships

The property came to BKM Capital Partners through its local leasing relationships rather than a marketed sale process. Brett Turner, partner and managing director of acquisitions and dispositions, led the acquisition for BKM alongside Charlie Farmer, director of acquisitions and dispositions. Nathan Williams of Scotland Wright Associates helped facilitate the transaction between BKM and Third & Urban.

"Going straight to the seller allowed us to secure exclusivity without a competitive process," Turner said. "The campus itself was built as light industrial but carries far more office than that design calls for. Third & Urban had already begun converting units back, and the space they delivered leased well, so we're continuing work that's proving itself rather than testing a theory."

Third & Urban acquired the property in 2025, when CBRE arranged $48.5 million of acquisition financing.

Repositioning Plan: Reducing Office Finish, Demising Suites

The campus carries a 57% office finish, which the firms described as well above what a shallow-bay industrial park typically supports. BKM will continue converting office space back to industrial use as leases expire, targeting an overall reduction to 36%. The firm also will demise three oversized suites into 10 smaller units aimed at the sub-15,000-square-foot segment, where demand along the corridor is deepest, according to the announcement.

BKM plans to bring the campus in line with its broader portfolio standards. Planned improvements include exterior painting, enhanced building and tenant signage, landscaping, parking lot repairs, roof upgrades and energy-efficient HVAC. Vacant suites will be brought to market-ready condition, with stabilization targeted within 20 months of acquisition.

"The market keeps building bigger and the tenants we serve keep needing smaller," said Brian Malliet, BKM's founder, CIO and CEO. "A business that needs 8,000 square feet in Sandy Springs or Dunwoody has almost nowhere to go. The nearest comparable campus is more than five miles north in Alpharetta. The location here cannot be replicated. But existing properties can be improved, and that's the part we control."

Atlanta Industrial Market Context

BKM cited a pullback in multi-tenant construction as support for its strategy. Multi-tenant industrial completions across Atlanta have fallen roughly 52% from their 2023 peak, from 13.1 million square feet to 6.2 million square feet in 2025. Nearly all of the metro's 9.4-million-square-foot pipeline is bulk distribution or advanced manufacturing rather than multi-tenant space, according to the firm.

BKM also reported that industrial space under 25,000 square feet across Metro Atlanta is 5.2% vacant and commands roughly $12.00 per square foot triple net, a premium of about 35% over space in the 100,000- to 200,000-square-foot range. Rents in that smaller-space band are up 44% over the past five years. These figures were supplied by BKM.

Broader market readings vary by methodology. Savills reported overall Atlanta industrial vacancy of 10.1% in the second quarter of 2026, up 60 basis points from the prior quarter but below the 2025 peak, with asking rents at a record $7.33 per square foot, up 4.4% year over year. Cushman & Wakefield data put second-quarter vacancy at 8.5% and average asking rents at $7.48 per square foot triple net, with Georgia 400 Corridor warehouse rents at approximately $11.68 per square foot. CBRE reported an 8.2% direct vacancy rate, 2.6 million square feet of quarterly net absorption and a $7.76-per-square-foot triple-net asking rate.

Larger, newer bulk-distribution buildings are drawing much of the current demand, while older and smaller-format properties face slower leasing and higher availability. Northridge Commons is positioned around infill access, smaller suites and the reconfiguration of existing space rather than competition with new bulk construction.

Sources

BKM Capital Partners: BKM Capital Partners and Kayne Anderson Real Estate Acquire 471,000-Square-Foot Atlanta Industrial Campus