KKR Expands US Industrial Footprint with $377M Acquisition

KKR has announced a significant expansion of its industrial real estate portfolio with the acquisition of six Class A logistics properties across major US Gateway and Sunbelt markets. The deal, valued at approximately $377 million, underscores KKR’s focus on high-quality, strategically located assets.

The newly acquired portfolio comprises six modern industrial properties, boasting an average construction year of 2014 and featuring advanced logistics capabilities such as 35-foot average clear heights. The portfolio is fully leased to a diverse tenant base.

Situated in key infill submarkets, the properties are located in prominent logistics hubs, including Seattle, Atlanta, Philadelphia, New Jersey, and the San Francisco Bay Area.

Ben Brudney, managing director in KKR’s Real Estate group, expressed enthusiasm about the acquisition: “We are excited to purchase these six well-positioned properties as we continue to grow our national portfolio of well-diversified, carefully selected industrial assets. We believe high-quality assets in infill locations near diverse demand drivers and accommodative labor forces will be increasingly difficult to reproduce in the coming years.”

This acquisition follows KKR’s recent investments in industrial warehouses in Nashville, Dallas, and Houston. With the addition of this approximately two million square foot portfolio, KKR’s total warehouse acquisitions in the US have reached nearly six million square feet since the beginning of the year.

The company’s investment in these properties is made through capital accounts advised by the firm, reflecting its commitment to thematic real estate investments. As of June 30, 2024, KKR’s global real estate business manages $75 billion in assets, with a team of over 150 dedicated professionals across 16 offices.