HOUSTON – (Realty News Report) – BKM Capital Partners, calling Texas an “economic powerhouse,” has acquired two Texas portfolios totaling 750,000 SF of light industrial space for nearly $90 million.
The two separate transactions, involving five properties in Houston and Dallas-Fort Worth, advance BKM’s strategy to scale its platform nationally by targeting high-growth, supply-constrained markets with significant value-add potential in the multi-tenant light industrial sector.
“Texas is an economic powerhouse.” – Brian Malliet, CEO of BKM Capital Partners
“This isn’t just about entering new markets—it’s about entering the right ones,” said Brian Malliet, BKM’s Founder, CEO and CIO. “Texas is an economic powerhouse with population growth, infrastructure investment, and a business-friendly climate all fueling demand for light industrial space.”
The newly acquired portfolios—one in Houston’s Southwest submarket and the other in the Northeast Dallas and Great Southwest submarkets—were purchased at a significant discount to replacement cost and collectively offer a 31% mark-to-market opportunity. Average current occupancy for the portfolios stands at 70% in Houston and 81% in DFW.
In Houston’s Southwest market, BKM bought a pair of adjacent properties totaling 242,555 SF for $29.5 million from Fort Capital. The 131,000-SF Southwest Business Park houses 22 units in three buildings, while the Stonecrest Business Center features 17 units in five buildings totaling 111,555 SF. Situated less than one mile from Interstate 69 and Beltway 8, the Houston properties provide superior access to population centers, corporate headquarters and port infrastructure.
Northward in Metro DFW, the firm acquired three assets with 512,000 SF across 16 units for $60.3 million. Previously owned by TA Realty, the properties include the 34,325-SF Northgate 22 in Dallas, a 42,506-SF facility at 501 106th St. in Arlington, and the Market Street Distribution Center, a five-building, 435,479-SF in Garland.
BKM has allocated $10.4 million toward capital improvements to elevate curb appeal, address deferred maintenance, and execute its signature repositioning program across all seven properties.
While overall vacancy in the 606.3-million-SF Houston market hit 6.2% at midyear, the Southwest submarket reported just 5.4% vacancy. Of the 17.8 million SF currently under construction across the metro, only 2 million SF is underway in the Southwest—and nearly all of it is for product exceeding 100,000 SF.
Meanwhile, the 1.1-billion-SF Metro DFW market is the nation’s third largest, fueled by continued demand from reshoring, e-commerce, and supply chain expansion. The submarkets of Northeast Dallas/Garland and Great Southwest/Arlington posted midyear vacancy rates of 7.8% and 6.3%, respectively, with 1.2 million SF of new development underway between them. That figure represents less than 8% of DFW’s overall 15.4-million-SF pipeline, most of which consists of larger projects or pre-leased space.
BKM acquired the Houston portfolio in partnership with BMA Capital Corp, while the DFW assets were acquired through its joint venture with Whittier Trust. CBRE represented the sellers in both transactions. Brett Turner, with support from Charlie Farmer, Director of Acquisitions & Dispositions, handled negotiations on BKM’s behalf.
Combined with the acquisition of Houston’s West Belt Business Park earlier this year, these transactions bring BKM’s Texas footprint to more than 1 million SF, marking a key milestone in its evolution into a national light industrial platform.
Aug. 30, 2025 Realty News Report Copyright 2025
Image Courtesy BKM
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File: BKM Spends $90 Million for Texas Industrial