Affiliates of Colony Capital have acquired a national portfolio of 54 light and bulk industrial buildings for $1.16 billion. Colony Capital is a diversified global real estate investment firm with $43 billion of assets under management. Transaction includes 48 last-mile logistics buildings and six bulk industrial buildings totaling nearly 12 million square feet.
This value-add portfolio is located across 10 U.S. markets, totals approximately 11.9 million square feet, and is 71 percent leased. Forty-eight of the buildings are last-mile light industrial and were acquired through Colony’s existing light industrial platform. The remaining six buildings are bulk industrial and were acquired through a newly formed joint venture in which Colony Capital has a 51 percent interest and a third-party institutional investor has a 49 percent interest.
“Our industrial platform has been scaling rapidly over the past four years and this transaction is a milestone that expands our portfolio by 25 percent in square footage,” said Lew Friedland, managing director at Colony Capital and head of Colony Industrial. “These high-quality, well-located light industrial assets will give us a stronger presence in both our existing markets and new target markets across the country, especially on the West Coast.”
Some highlights of the light industrial portfolio include:
- Light industrial assets are the majority of the acquisition with approximately 7.7 million square feet in 48 buildings in nine markets (of which, four buildings are set to close within the next six months).
- The properties are located across the United States in Northern and Southern California, Washington state, Oregon, Nevada, Illinois and Pennsylvania.
- The portfolio includes markets where Colony Industrial has an established presence and new target markets where the company will be investing for the first time.
- The attractively located infill buildings are near major highways and average 160,000 square feet in size.
- The portfolio is 73 percent leased and most tenants are national or international corporations.
Some highlights of the bulk portfolio include:
- The bulk assets of the acquisition represent approximately 4.2 million square feet, with an average of 700,000 square feet per building, in six buildings in five markets.
- The properties are located in Oregon, Northern California, Nevada, Pennsylvania and Kentucky, well-situated for local and regional distribution near major highways and interstates.
- The modern properties have an average year built of 2015 and are 67 percent leased to blue-chip, international companies.
The seller was represented by CBRE National Partners.
