Xebec Secures $475M for Industrial Initiative

Xebec,  a Dallas-based industrial development and investment management platform, has announced that BentallGreenOak is investing $475 million of equity in Xebec-sponsored ventures. 

The strategic partnership includes an initial $170 million joint venture with Xebec Logistics Trust, LP in a portfolio of stabilized core assets and an initial commitment of up to $305 million to Xebec’s future investment opportunities.

BentallGreenOak’s majority investment in the joint venture formed with XLT funded the acquisition in March of five, fully-leased, new Class A industrial logistics assets totaling 1.6 million square feet and developed by Xebec. With the completion of BentallGreenOak’s investment and the acquisition of these new assets, and the contribution of XLT’s existing portfolio, the new joint venture comprises 13 industrial assets valued at approximately $560 million and totaling approximately 2.8 million square feet.

The portfolio is 100% leased to tenants with over 80% of the portfolio’s value located in Southern California, the country’s leading industrial market.

In addition to the investments in the newly formed core joint venture with XLT, BentallGreenOak has committed over $300 million in equity to Xebec’s future industrial logistics investment pipeline.

With the industrial asset class one of the best performing in CRE, similar investments and platforms are proliferating by the month.

Also in Texas, Houston-headquartered Alliance Residential Co. recently announced it has launched Alliance Industrial Co. Alliance is the No. 2 developer and the No. 44 owner on the NMHC’s list of top companies in the apartment industry.

Alliance Industrial Co. will be focused on capitalizing on the e-commerce-fed demand in essential warehouse logistics and distribution space development. President and CEO Cyrus Bahrami, a senior partner in Alliance’s residential platform, plans to leverage Alliance’s relationships and track record in the capital markets and its national infrastructure to create and run an industrial platform using a model similar to Alliance Residential.

A recent report from Colliers shows that industrial was the frontrunner for investors throughout COVID.

“As the food supply chain rapidly evolves and modernizes, investing in the ‘last mile of food’ is the next frontier, with suppliers working to shift their current logistics and distribution networks closer to home,” the report states.