DC's Still Waiting With Open Arms for Norges

WASHINGTON, DC-One of the first commercial real estate investments Norges Bank Investment Management made in the US, one year ago, was in the Washington DC area. Since then the sovereign wealth fund has been snapping up properties around the country and per its new agreement with Prologis, will clearly continue.

The question for the local CRE community is when will the love return for DC? On one hand the Prologis JV holds out hope. As we reported yesterday, Prologis and Norges signed a $1 billion agreement to extend its European partnership into the US. The venture will acquire a $1 billion stabilized portfolio of 66 logistics facilities totaling approximately 12.8 million square feet across the U.S. The portfolio will comprise a portion of assets from Prologis’ former North American Industrial Fund III and Prologis Institutional Alliance Fund II. The venture is expected to close in January 2014.