BKM and Kayne Anderson buy Orlando industrial portfolio for $103 million

BKM Capital Partners and Kayne Anderson Real Estate bought a four-property, 543,000-square-foot light industrial portfolio in Central Orlando for $103 million a day after the same two firms closed on a seven-building Fort Lauderdale park for $57 million. Together, the two deals put $160 million of small-bay industrial into two Florida markets over consecutive closings, and because both portfolios arrived nearly full, each bid is a price on in-place rent and the plan that can be run against it.

The Orlando assets sit in the 33rd Street/McLeod and Silver Star corridors, comprising seven buildings and 22 units at 95% occupancy with a 4.3-year weighted average lease term. At $103 million for 543,000 square feet, the basis works out to roughly $190 a foot, a price that only holds if the tenants keep renewing near market, and a rent roll spread across 22 units makes the management load part of what the buyer is paying for.

The new portfolio splits between BKM's Gridline Orlando portfolio and standalone assets, two properties each, and takes BKM's Central Florida holdings to 13 properties and more than one million square feet. At that scale, leasing, capital projects and property management can run across the whole portfolio, and the buildings offer clear heights of 16 to 28 feet with a 1:4,000-square-foot loading ratio.

BKM has a capital improvement plan for the portfolio, and the 4.3-year weighted average lease term sets the deadline: rollover arrives soon enough that the improvements have to lift rents ahead of the next round of renewals.

Brett Turner led the acquisition for BKM alongside Max Stone, and Rick Brugge of Cushman & Wakefield marketed the portfolio for an unnamed seller.

The two closings show where the industrial bid is clearing this month: occupied multi-tenant product in infill corridors, bought at a basis that relies on the property plan. Neither portfolio was empty — 97% leased in Fort Lauderdale and 95% in Orlando — so the demand side was settled before either buyer showed up.

The Fort Lauderdale leg shows the same math: that seven-building park last traded at $17.5 million in 2013 and cleared in the prior day's deal at $57 million, roughly three times the 2013 price across 13 years.

At about $190 a foot with 95% of the space paying, the capital plan reads as a rent mark rather than a repair job. The next round of renewals will show whether that mark holds.