US Industrial Portfolio Trades for $1B

Global private markets firm Partners Group has sold a large-scale, US industrial real estate portfolio on behalf of one of its clients, for more than $1 billion.

The portfolio encompasses 88 industrial properties, which total a combined 8.6 million square feet of leasable space. The portfolio’s properties comprise 74 light industrial buildings and 14 class A, bulk industrial buildings, which primarily serve e-commerce distribution tenants.

The properties are primarily located throughout the Mid-Atlantic and the Southeast regions, including Atlanta, Nashville, Norfolk, Raleigh-Durham and the Shenandoah Valley.

In partnership with Equus Capital Partners, Partners Group built the portfolio by combining three separate lead investments within five US markets. Since Partners Group’s original investment, an additional 750,000 square feet of space has been added to the portfolio.

At the time of the disposition, Partners Group had increased occupancy levels to 98%.

The disposition provides Partners Group’s clients with a return of more than 2x.

“Partners Group built this portfolio of quality assets across attractive industrial markets, gaining exposure to key transformative trends, such as the rise of e-commerce and relatively outsized expansion of regional growth cities,” says Ron Lamontagne, Partners Group’s managing director and co-head of private real estate Americas.

Lamontagne adds, “We continue to see relative value in the industrial sector and, in particular, we have conviction in last-mile distribution facilities, smaller urban logistics warehouses and cold storage facilities, which are supported by resilient structural market trends.”

For the transaction, Equus Capital Partners was advised by a JLL team led by Mike Joseph, Doug Bond and Dan Cashdan.