Turner: We have a value-add strategy, and once we complete the value-add component to the deal, we get out. We've been fortunate in the last 90 days to complete that on three of our properties. These were all completed in half the projected timeframe that we were originally looking at and had underwritten for the property. We look for whether we can hit the exit price and multiple criteria we had projected.

GlobeSt.com: What is your disposition strategy going into 2017?

Turner: We have a number of assets nearing stabilization, and there's a tremendous appetite for multi-tenant industrial from investors who are eager to take advantage of tenant diversification. Family offices and high-net-worth individuals especially like this asset class. With multi-tenant industrial, if you have a good operator, you should never have less than 90% occupancy. We have a number of assets getting near that peak occupancy and the peak value we look for; we had a deal in Las Vegas that went from 79% occupancy to 91% occupancy in the last couple of years, and we have another in Phoenix that we bought at 60% occupancy and is now at 90% occupancy.

GlobeSt.com: What is your acquisition strategy going into 2017?

Turner: We're still spending money from our BKM Industrial Value Fund I. We're in the midst of fundraising our second fund, which will focus on assets west of the Rockies moving into Denver. Between those two funds, we will have more than $1 billion worth of buying power.

GlobeSt.com: Is your plan to be more of a seller or more of a buyer this year, and why?

Turner: We certainly have this influx of capital to spend, and also, we're a newer company, so we don't have more than what we just bought ready to roll. We're moving at pretty rapid rate in Seattle, Phoenix, San Diego—vacancies are low in all of these markets, and the fundamentals are absolutely astonishing. We're bullish on the market in general. We're value-add, and we're seeing increased lease rates by the improvements we're making to properties. Also, from a macro perspective, our product type is a hedge against inflation. Short-term leases roll to market quicker and quicker, and as the economy is growing as Trump is projecting, our product type is in a prime position to take advantage of that with the new administration.

IRVINE, CA—Whether it's building the wall along our southern border or bringing manufacturing jobs back to the US, multi-tenant industrial buildings are in prime position to take advantage of what's to come from the Trump administration's policies, BKM Capital Partners' director of acquisitions Brett Turner tells GlobeSt.com. As we recently reported, the firm, an institutional-fund manager with a niche focus on value-add, multi-tenant light-industrial investments, has sold the first three multi-tenant industrial business parks in its debut fund.

The three dispositions include Patrick Commerce Center, a 223,009 square-foot multi-tenant industrial building, and Wind River Industrial Complex, a 137,603-square-foot industrial complex in Las Vegas, and Hayden Business Park, a 98,516-square-foot business park in Portland, OR. All of the properties underwent improvements and repositioning efforts before being sold.

We spoke with Turner about the dispositions and the firm's acquisition and disposition strategies in 2017.

GlobeSt.com: You have gone through a number of dispositions recently. How do you determine which properties will be sold versus held?

Turner: We have a value-add strategy, and once we complete the value-add component to the deal, we get out. We've been fortunate in the last 90 days to complete that on three of our properties. These were all completed in half the projected timeframe that we were originally looking at and had underwritten for the property. We look for whether we can hit the exit price and multiple criteria we had projected.

GlobeSt.com: What is your disposition strategy going into 2017?

Turner: We have a number of assets nearing stabilization, and there's a tremendous appetite for multi-tenant industrial from investors who are eager to take advantage of tenant diversification. Family offices and high-net-worth individuals especially like this asset class. With multi-tenant industrial, if you have a good operator, you should never have less than 90% occupancy. We have a number of assets getting near that peak occupancy and the peak value we look for; we had a deal in Las Vegas that went from 79% occupancy to 91% occupancy in the last couple of years, and we have another in Phoenix that we bought at 60% occupancy and is now at 90% occupancy.

GlobeSt.com: What is your acquisition strategy going into 2017?

Turner: We're still spending money from our BKM Industrial Value Fund I. We're in the midst of fundraising our second fund, which will focus on assets west of the Rockies moving into Denver. Between those two funds, we will have more than $1 billion worth of buying power.

GlobeSt.com: Is your plan to be more of a seller or more of a buyer this year, and why?

Turner: We certainly have this influx of capital to spend, and also, we're a newer company, so we don't have more than what we just bought ready to roll. We're moving at pretty rapid rate in Seattle, Phoenix, San Diego—vacancies are low in all of these markets, and the fundamentals are absolutely astonishing. We're bullish on the market in general. We're value-add, and we're seeing increased lease rates by the improvements we're making to properties. Also, from a macro perspective, our product type is a hedge against inflation. Short-term leases roll to market quicker and quicker, and as the economy is growing as Trump is projecting, our product type is in a prime position to take advantage of that with the new administration.