Equus' $900M Acquisition Fortifies Its Industrial Portfolio
It has acquired 75 properties with a diversified rent roll and balanced lease maturity schedule.
Equus Capital Partners has found its ideal industrial portfolio—one that includes assets in high-growth markets leased to nearly 100 percent with room for rent boosts.
It acquired a 75-property, 5.4 million square foot industrial portfolio located across seven high growth, major distribution markets through the Sun Belt and East Coast.
It paid approximately $900 million for the portfolio to seller Prologis, according to news accounts.
The portfolio is predominantly composed of multi-tenant in-fill shallow bay properties located in established transportation corridors and population centers.
The portfolio is 98% leased to nearly 250 tenants.
Equus’ Holdings Span 11 Industry Segments
The investment, which closed in January, was made on behalf of an Equus sponsored value-added fund, Equus Investment Partnership XII, and a consortium of strategic co-investment partners.
The 5.4 million square foot portfolio includes industries spanning e-commerce, logistic providers, manufacturing, business-to-business, and business-to-consumer uses with no tenant industry accounting for more than 23% of the occupied square footage.
The high occupancy and short-term nature of the rent roll provide for immediate value creation through a mark-to-market of rental rates and expansion of lease duration, the company said.
“The diversity of the portfolio in terms of geography and tenancy combined with the in-fill nature of these locations should allow for durable cash flow and consistent rental rate growth going forward,” commented Tim Feron, VP of Acquisitions, in prepared remarks.
This portfolio investment builds on Equus’ investment strategy of aggregating multi- and single-tenant in-fill properties located in desirable growth corridors across the United States.
“This most recent investment further diversifies our platform holdings in the industrial sector and provides access to dynamic distribution locations poised to benefit from improving industrial fundamentals and sustained population growth,” Kyle Turner, Partner and Director of Investments of Equus, said in prepared remarks. “The portfolio fits well with our investment strategy that is focused on high quality in-fill shallow bay and distribution properties in high barrier to entry locations.”
Kyle Turner and Tim Feron, along with Laura Brestelli, Senior Vice President, Joe Felici, Vice President, Scott Miller, Associate and Ryan Klancic, Analyst, oversaw the transaction for the firm. Equus’ legal counsel was Howard Grossman at Cozen’ O’Connor and Eastdil Secured advised on the debt placement.