Northwood Investors is expanding its presence in the Sunbelt with a purchase of a 1.8 million square foot industrial portfolio.
The assets are located in Georgia, Florida, and Texas. The portfolio average lease term is seven years, with rents roughly 40 percent below the market value, according to JLL, which represented the seller on the deal and secured the financing.
The properties are:
- Havertys Distribution Center – Braselton, Georgia
- Home Depot Cedar Port Distribution Center – Baytown, Texas
- 10000 NW 15th Terrace - Miami, Florida
“This portfolio transaction exemplifies the robust demand for well-positioned industrial assets in high-growth Sunbelt markets,” Britton Burdette, senior managing director of JLL, said in a statement.
“Each property’s strategic location contributes to the portfolio’s overall value proposition, making it an attractive investment in today’s competitive landscape.”
The assets, known as the Sunbelt Logistics Distribution Portfolio, add to Northwood’s Sunbelt properties. It has assets scattered in various other major cities in the region from Atlanta to Houston.
The Sunbelt region has been particularly popular for its significant population growth in recent years. A big issue with industrial has been oversupply. That’s led to expanded vacancies - with higher asking rents, as highlighted in a recent Colliers report. However, as the supply gets absorbed, both of those categories should stabilize.
As of December 2024, Northwood managed roughly $8 billion worth of assets.