Fund II was launched with an initial allocation of $450 million in equity. “We are pleased to have closed this large, complex transaction, which marks the successful and profitable close of an investment program we launched in late 2005,” says Cabot CEO Franz Colloredo-Mansfeld. “Continuing strong tenant demand and very favorable conditions in the industrial property markets should also make this a successful investment for DRA Advisors.” Eastdil Secured and Cushman & Wakefield represented Cabot in the transaction.

NEW YORK CITY—No stranger to the industrial sector, private equity real estate firm DRA Advisors has bulked up its holdings by acquiring a 184-property portfolio from Cabot Properties Inc. The $1.07-billion buy expands DRA's industrial footprint by 19.8 million square feet, and completes the profitable disposition of assets held by Cabot's Industrial Value Fund II, launched in 2005.

“We are enthusiastic about the investment potential of this portfolio and the ability to extend our national industrial footprint to over 45 million square feet,” says David Luski, president of New York City-based DRA. In 2012, the firm acquired about 21 million square feet in two separate portfolio deals: a $342-million acquisition from Weingarten Realty Partners and, at year's end, a joint venture with Westcore Properties to buy 110 industrial assets from JB Properties for $600 million.

The portfolio DRA has bought from Cabot runs to 21 markets throughout the US, including the major industrial hubs of Dallas, Chicago, Columbus, Houston and Atlanta. Occupancy averages 94%, and the portfolio is leased to more than 500 tenants,

In reporting on the deal Tuesday, CoStar noted that with an average size of less than 108,000 square feet, the properties are “relatively small in the current era of mega-big-box warehouse and distribution properties. But smaller industrial buildings, especially those located near large population centers, are finding increasing favor with investors as e-commerce and shipping supply chains shift their focus to the 'last mile' of retail goods delivery to consumers.”

Fund II was launched with an initial allocation of $450 million in equity. “We are pleased to have closed this large, complex transaction, which marks the successful and profitable close of an investment program we launched in late 2005,” says Cabot CEO Franz Colloredo-Mansfeld. “Continuing strong tenant demand and very favorable conditions in the industrial property markets should also make this a successful investment for DRA Advisors.” Eastdil Secured and Cushman & Wakefield represented Cabot in the transaction.