Colony Capital Adds 12 Million SF in $1.2B Deal
The light industrial assets added to Colony’s portfolio total approximately 7.7 million square feet in 48 buildings in nine markets. The properties are located across the US in Northern and Southern California, the State of Washington, Oregon, Nevada, Illinois and Pennsylvania.
DALLAS—A little over a week after it traded an industrial portfolio of more than 2 million square feet comes news that affiliates of Dallas-based Colony Capital has acquired an 11.9-million-square-foot industrial portfolio in a deal valued at $1.16 billion.
The firm’s latest acquisition involves a portfolio located across 10 US markets and is 71% leased. A total of 48 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% interest and an unnamed third-party institutional investor has a 49% interest. The unidentified seller was represented by CBRE National Partners.
“Our industrial platform has been scaling rapidly over the past four years and this transaction is a milestone that expands our portfolio by 25% in square footage,” says 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.”
He describes the deal as a strategic expansion for Colony’s industrial platform into the bulk industrial space. The transaction also complements the firm’s presence in last-mile, warehouse logistics properties. “Our growing national network of industrial warehouse options gives us new opportunities to serve customers and create synergies from strong existing relationships with tenants, owners, sellers and brokers,” Friedland notes.
The light industrial assets added to Colony’s existing industrial portfolio total approximately 7.7 million square feet in 48 buildings in nine markets. The properties are located across the US in Northern and Southern California, the State of Washington, Oregon, Nevada, Illinois and Pennsylvania. The portfolio is 73% leased are located near major highways and average 160,000 square feet in size. Most of the portfolio’s tenants are national or international corporations.
The bulk assets acquired total approximately 4.2 million square feet, with an average of 700,000 square feet per building, in six buildings located in Oregon, Northern California, Nevada, Pennsylvania and Kentucky. Interstates. The properties have an average year built of 2015 and are 67% leased to blue chip, international companies, Colony Industrial states.
In late February, Colony Industrial announced it closed on the sale of a light industrial portfolio to Nuveen Real Estate, a division of TIAA, for $136 million. The warehouse portfolio totaled 2.3 million square feet and is situated in four markets including 18 buildings in Atlanta, five buildings in Dallas, five buildings in Houston and six buildings in the Pennsylvania/New Jersey market.
As of Dec. 30, 2018, Colony Industrial owned and operated 48.5 million square feet of warehouse buildings in 20 major markets across the United States, with a gross asset value of more than $3.7 billion.