Elion Expands Last-Mile Portfolio with $245M in Acquisitions
The firm’s focus is across key coastal markets and has closed its first Los Angeles asset.
Elion has made a series of acquisitions totaling 1.2 million square feet spread across 10 last-mile logistics assets for $245 million within the New Jersey, Los Angeles, Miami, Seattle and San Diego markets.
The firm’s investment strategy is focused on last-mile logistics real estate, targeting infill locations in supply-constrained, core coastal markets. The acquisitions were completed during the third and fourth quarters of 2021 following the announcement of the firm’s final closing of Elion Industrial Fund 1, which reached its hard cap of $500 million in August. Including these latest acquisitions, the fund has invested in 3.9 million square feet and more than $1 billion in gross asset value.
Sector Stayed Hot to Close 2021
Last-mile assets have been the focus of many investors during the past year with the growth of e-commerce accelerating during the pandemic and there are high expectations that strong demand in this asset class will continue.
Meanwhile investors continue to flock to the category. Rockpoint and BEB Capital last month announced a joint venture that will target an investment pipeline of up to $1 billion of industrial assets in the Northeastern United States, with a primary focus in Long Island, NY.
Faropoint and McDonald Development were also involved in dealing late last year.
Elion Identifies Value-Add Opportunities
James Lambert, Senior Managing Director of Industrial Investments at Elion, said his company is targeting well-located properties with the opportunity to generate appreciation through vacancy lease-up, capital investment and create efficiencies through functionality improvement.
“Through our relationships and data-driven approach to sourcing opportunities early, we have been able to aggregate a portfolio of primarily pre-marketed assets while identifying value-add opportunities that meet the needs of today’s logistics providers,” Lambert said in prepared remarks.
The series of transactions included the firm’s first acquisition in the Los Angeles market.