PGIM Actual Property has enhanced its industrial holdings by four.7 million sq. toes in a single fell swoop with the acquisition of an eight-property nationwide portfolio. The worldwide asset supervisor acquired the group of 15 buildings from funds managed by Crow Holdings Capital for $425 million, marking one of many largest U.S. industrial portfolio trades amid the COVID-19 pandemic.
Spanning Atlanta, Dallas, Denver, Fort Value, Texas, and Phoenix, the eight belongings sit inside premier distribution markets providing entry to vital infrastructure and proximity to densely populated, high-growth places close to gateway airports. The portfolio consists of under-construction and newly delivered properties, together with the roughly 409,000-square-foot distribution heart at 10209 W. Roosevelt St. in 101 Logistics Park simply exterior Phoenix in Avondale, Ariz. Crow Holdings developed the two-building 101 Logistics Park in partnership with Seefried Industrial Properties.
Crow Holdings constructed all 15 amenities with the performance required for rising e-commerce and last-mile distribution calls for; superior distribution operations and autonomous equipment; in addition to next-generation makes use of. The partially accomplished state-of-the-art portfolio has already confirmed well-liked amongst tenants out there for area. Strong leasing exercise continued throughout the sale course of, in the end leaving 4 of the delivered buildings totally leased. The tenant roster presently consists of various nationwide retail chains and firms.
Down however hardly out
Whereas U.S. industrial real estate has seen its gross sales quantity go on the downswing throughout the pandemic, the sector stays an investor favourite. “The sector’s decline was the smallest of any main property kind. And, of the $11.1 billion in industrial transaction quantity, round one-third got here from gross sales of distribution warehouses,” based on a mid-year report by Actual Capital Analytics. “Distribution warehouses continued to be a goal for buyers within the second quarter of 2020 amid heightened consideration on the spine of logistics infrastructure.” Notable transactions included the 1.5 million-square-foot, Amazon-occupied Kenosha Enterprise Park in Kenosha, Wis., which traded for $176 million, and Amazon’s 855,000-square-foot Distribution Heart in North Las Vegas, which bought for $110 million.
Funding exercise within the third quarter seems to be simply as energetic—if no more energetic—because it was within the second quarter. In August, a three way partnership of Wharton Industrial and a Walton Road Capital-affiliated funding fund acquired a 1.2 million-square-foot New Jersey portfolio from the Bloom Group. In July, The Koll Co. and PCCP LLC partnered on the acquisition of a half-million-square-foot portfolio, buying the 2 Sacramento and Salt Lake Metropolis properties from a personal household belief for $41.three million. Moreover, Invesco bought a 1.eight million-square-foot portfolio of warehouse and distribution properties in metropolitan Boston and Chicago in two separate transactions totaling $200 million. With the closing of the Crow Holdings transaction, PGIM Actual Property’s third quarter acquisitions for its core fund now complete 49 premier industrial properties encompassing an combination 12.three million sq. toes in key U.S. distribution markets.