PRP Allocates $2B For Logistic, Data Center Purchases
At the same time it has just closed on four office transactions totaling $1.04 billion in value.
PRP, an investment management firm focused on credit net lease investments, is allocating $2 billion to acquire credit tenant-leased logistic assets and data center land and buildings across primary and secondary markets as part of its push to diversify its net lease portfolio. At the same time, the company has sold a handful of net lease office properties with a transaction value of $1.04 billion.
The logistic and data center sectors remained highly resilient throughout the pandemic and continue to grow at rates well in excess of inflation, Joe Neckles, managing director of Net Lease Acquisitions at PRP, said in explaining the moves. “The assets that we are acquiring are located in attractive markets backed by solid demographics, high barriers to entry and historically high industrial occupancy rates.”
On August 19, 2021, PRP closed on the $204.41 million sale of Sequoia Plaza, a three building, 370,000-square foot office portfolio leased to Arlington County, Virginia. The properties were acquired by an affiliate of Boyd Watterson Asset Management. Sequoia Plaza serves as the headquarters for Arlington County’s Department of Human Services and the Arlington County Public School System.
PRP also closed on the disposition of the 3M Austin Office and Lab Campus, a 335,825 square foot, two-building complex located in the Northeast submarket of Austin, Texas for $184.1 million. Completed in 2019, the properties consist of a 204,400 square foot office building and a 131,425 square foot single-story lab building. 3M leases the buildings for 13.5 years on a triple net basis.
In separate transactions, PRP is selling two additional net lease office investments located in Gaithersburg, Maryland and Dallas, Texas. In Gaithersburg, PRP has entered into an agreement to sell Two Washingtonian, a 294,000 square foot office building leased to Leidos, a science, engineering and information technology company that provides services and solutions in the defense, intelligence, civil and health markets, both domestically and internationally. And in Dallas, PRP is selling the headquarters for Pioneer Natural Resources, a 1,125,000 square foot office building leased to the oil and gas exploration and production company.
The four office dispositions total 1.8 million square feet and over $1.04 billion in transaction value.