Realterm Sells 22-Property Logistics Fund
The firm has liquidated its Realterm Logistics Fund II entirely, comprising 1.8 million square feet of transportation-advantaged, high flow-through facilities.
ANNAPOLIS, MD – Realterm has liquidated its Realterm Logistics Fund II entirely, by selling all 22 properties in the fund’s portfolio.
The 22 properties total more than 1.8 million square feet of space and comprise transportation-advantaged, high flow-through facilities.
The national portfolio is 100% leased to 29 tenants within the transportation and logistics industries. All together, the properties feature 778 doors and span 200.4 acres.
The portfolio includes nine truck terminal/transload properties that total 513,082 square feet, eight final mile warehouses that total 1,219,909 square feet, four intermodal/secure parking properties that span 5,032 square feet and one fleet operations property that spans 35,226 square feet.
The properties are situated in primary industrial markets. The portfolio’s New York/New Jersey properties represent 52% of the portfolio by rent and the Los Angeles properties represent more than 24% of the portfolio by rent.
Realterm retained CBRE as its exclusive advisor on the transaction.
“Transportation oriented properties with differentiated HFT characteristics facilitate the rapid and high-volume movement of goods through supply chains,” states Bob Fordi, CEO of Realterm. “These properties have gained importance with the growth of e-commerce, which demands increased speed and efficiency from manufacturers and retailers by consumers. This 22-property portfolio optimizes e-commerce supply chains, and is concentrated in many of the most dynamic primary logistics markets in the US.”
“Demand for HFT space has expanded significantly as logistics spending in the e-commerce sector has accelerated but speculative development has remained limited due to stringent zoning restrictions, limited and expensive land availability and competing uses,” says Ed Brickley, managing director and senior fund manager of Realterm. “As a result, rents for HFT space have grown considerably over the last several years, often at an order of magnitude greater than the already robust rent growth seen for traditional industrial space.”