Plymouth Industrial REIT has formed a $150 million equity joint venture with Madison International Realty to pursue the acquisition of value-add and opportunistic industrial properties in key target markets. Plymouth will own a 20 percent interest in the joint venture, and Madison will own an 80 percent interest.
Plymouth will be responsible for day-to-day oversight of the joint venture, its subsidiaries and properties and will be entitled to an annual asset management fee equal to 1 percent of the total equity contributed to the joint venture by the partners as well as a promote based on return thresholds. Additionally, Plymouth has options to purchase properties out of the joint venture over time.
For its initial investment, the joint venture has agreed to acquire a 28-property portfolio of class B industrial properties totaling 2.3 million square feet in metropolitan Memphis. The acquisition, which is subject to customary closing conditions, is expected to close by
