(Read more on the industrial market.)
NEW YORK CITY-TIAA-CREF has sold a portfolio of 22 warehouse and distribution buildings, for the benefit of its separate real estate account, for $270 million. Financing for the acquisition was provided by Credit-Suisse Column Financial.
Although the purchaser was not be disclosed, London-based Strategic Real Estate Advisors acted as real estate investment advisor on behalf of the private client in the portfolio purchase, which spans 11 cities across the US. The portfolio contains a total net rentable area of 5.5 million sf and is well diversified both geographically and by tenant profile.
The portfolio includes multiple holdings in Cincinnati, Philadelphia, Atlanta and Memphis, as well as properties in Salt Lake City, Phoenix, San Diego, Chicago, Dallas, El Paso and Oakland, CA. The buildings in the portfolio were 91% leased at closing to well known tenants such as Federal Express, DuPont, the Gap, UPS, Komatsu, Curascript and Mitsui.
Strategic Real Estate Advisors, although unable to provide any information on the buyers, tells GlobeSt.com the details of the portfolio: In Atlanta, Corporate Lakes is composed of three buildings for a total of 650,253 sf; in Philadelphia, Boulden Circle is composed of three buildings for a total of 266,141 sf; in Chicago, Woodcreek III is 149,907 sf, while 1155 Harvester has 212,922 sf; in Cincinnati, Park West is composed of four buildings for a total of 1.4 million sf; in Memphis, Southpoint is three buildings composed of 1.6 million sf; in Dallas, 2101 Design Rd. has 201,600 sf; in El Paso, Butterfield Industrial consists of two buildings for a total of 183,510 sf; in Phoenix, Freeport Center is composed of 136,704 sf; in Salt Lake City, Landmark IV is 328,504 sf; in Oakland, 1942-1956 Sabre St. is 83,854 sf; in San Diego, Eastgate composes 200,000 sf.
"In this increasingly competitive environment we have focused on suitable multi-let alternative investments such as light industrial properties where we can utilize our asset management skills to enhance the overall returns," says Jeremy Gates, managing director of Strategic Real Estate Advisors, in a prepared statement. "With improving market conditions and the strategic location of these buildings, this acquisition represented an opportunity to realize a solid current and future return for our client, and to further expand our logistics portfolio on a national scale to almost 30 million sf."
TIAA-CREF had no comment for GlobeSt.com regarding the deal. However, a TIAA-CREF spokesperson tells us that "as one of the largest institutional real estate investors in the country TIAA-CREF actively manages our real estate portfolio by buying and selling properties to add value for our clients."
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
