BKM Capital Partners, a vertically integrated institutional fund manager focused on multi-tenant light industrial real estate, and Kayne Anderson Real Estate, the real estate investment division of Kayne Anderson, have jointly acquired PacTrust Business Center for $30 million.
The deal, which reflects a 55 percent discount to replacement cost, enhances their strategic positioning in Silicon Valley’s constrained industrial market. The acquisition was led by Brett Turner, senior managing director at BKM. Located on 7.3 acres in San Jose’s Golden Triangle, PacTrust Business Center comprises 94,317 square feet across seven industrial buildings. The site features 38 units averaging 2,508 square feet, 53 grade-level doors, 285 parking spaces, and clear heights between 15.1 and 15.3 feet. Built in 1982 and renamed Montague Exchange, the property is 96 percent leased to a diverse base of engineering, manufacturing and tech tenants. Notably, no single tenant occupies more than 5.3 percent of the space, contributing to strong occupancy stability.
Cushman & Wakefield represented the seller, PacTrust.