SAN FRANCISCO—Ivanhoé Cambridge has completed the acquisition of light industrial specialist Evergreen Industrial Properties from TPG Real Estate. Financial terms of the transaction were not disclosed and Ivanhoe Cambridge declined to elaborate on requests for additional comment by GlobeSt.com. Ivanhoe Cambridge owns retail, office and multifamily properties so this acquisition likely fills a void for the company, GlobeSt.com learns.
“We are very enthusiastic about this acquisition. We started looking at companies in the industrial real estate sector over two years ago with the intention of making a strategic investment in this asset class,” says Arthur Lloyd, president, office North America, at Ivanhoé Cambridge. “Industrial real estate offers an attractive current return and good diversification for our office portfolio in terms of underlying economic drivers. We believe we have found the right fit with Evergreen. We continue to look for opportunities as we plan to grow our industrial business in the years to come.”
Evergreen owns and operates a portfolio of more than 150 US properties, comprising approximately 16 million square feet across 18 major markets. In addition to high-growth markets such as Seattle, Denver and Charlotte, the company has a significant presence in major distribution markets, including Atlanta, Chicago and Dallas. Additional markets include Portland, OR; Salt Lake City, Phoenix, El Paso, TX; San Antonio, Houston, Minneapolis, Columbus, OH; Cincinnati, Nashville, Jacksonville, FL and Tampa, GlobeSt.com. learns.
TPG Real Estate created Evergreen in 2014, seeding the platform with a 7.5 million-square-foot portfolio acquisition. Through 11 distinct acquisitions, Evergreen then acquired the additional 127 properties in 18 targeted markets. This transaction reflects TPG Real Estate's theme-driven approach to investing, building and scaling differentiated real estate platforms.
“In creating Evergreen, we saw an opportunity to build a platform that was positioned to benefit from a dynamic sector shift to 'last mile' and infill locations by light industrial and e-commerce users,” said Avi Banyasz, partner and co-head of TPG Real Estate. “Working with the Evergreen team, we have developed a solid operating platform that has continued to drive performance and growth. We have enjoyed partnering with the company over the past few years and believe it is well-positioned to continue to grow under Ivanhoé Cambridge's ownership.”
Evergreen's facilities offer strategic infill locations to distribution, e-commerce and light manufacturing customers with a focus on last-mile distribution. Evergreen focuses on infill multi-tenant assets of less than 250,000 square feet in locations that are well-positioned to serve the needs of last-mile users in growing metropolitan centers. By leveraging local relationships and market expertise, Evergreen has successfully established a track record of acquiring assets through both single-property and portfolio transactions.
Evergreen's investment criteria are transaction sizes ranging from $5 million to $500 million with opportunities to invest at a discount to replacement cost, 20% or less office build-out and clear heights in excess of 20 feet, GlobeSt.com learns.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
