KKR Acquires Florida Industrial Portfolio
In 2024, KKR has acquired almost eight million square feet of new industrial space.
KKR has made a big move in the greater Central Florida area by announcing the acquisition of a 1.2 million square foot industrial portfolio.
The assets include four sites, which serve regions including Tampa and Orlando. Of those, two are located in southwest Orlando, which, according to KKR, “facilitate access to key demand drivers across Central Florida.” Also, the portfolio lies at the section of Interstate 4 and U.S. Route 27.
The four properties are fully leased to five tenants, which include regional market players, and investment grade public firms. The purchase price for the portfolio was not revealed by the firm.
“We are pleased to grow our footprint in Central Florida with the purchase of these strategically located, high-quality warehouse assets,” said Ben Brudney, managing director in the real estate group at KKR, overseeing the firm’s industrial investments in the country.
“We believe that prime transit-adjacent distribution locations in southwest Orlando continue to benefit from strong demand drivers and limited new supply.”
The move continues KKR’s industrial acquisition spree. In August, the company bought another Class A logistics industrial portfolio for $377 million. The assets were located in Seattle, Atlanta, Philadelphia, New Jersey, and the San Francisco Bay Area. Additionally, the New York-based firm acquired a Houston industrial park for $234 million this summer. In 2024, KKR has acquired almost eight million square feet of new industrial space.
The latest portfolio is being supported by the company’s KKR Real Estate Partners Americas III fund.
Over the last eight quarters, there has been a record new industrial supply in the top 25 markets, according to a report from Colliers. But considering that fact, Tampa performed relatively well. The city saw one of the smallest vacancy increases of only 160 points. Plus, Tampa saw one of the biggest asking rent increases at 16.4 percent year-over-year in the first half of 2024, and South Florida gained 7.8 percent over the period.