Arcapita, Arden Group Launch $2B Warehouse JV
The focus is on multi-tenant warehousing, seeded by a portfolio of over 7 million square feet.
Capital is pouring into the logistics commercial real estate sector, with the latest initiative a joint venture between Arcapita Group Holdings and Arden Group.
Arcapita, a global alternative investment firm, is partnering with US real estate company Arden Group, to acquire multi-tenant industrial properties in urban centers across major markets in the US.
The new venture closed on an initial portfolio of properties valued at over $550 million, with an additional $250 million of properties closing in the near term. Plans are to grow the portfolio to up to $2 billion in gross asset value across the top 25 US industrial markets.
The venture’s initial portfolio totals approximately 5 million square feet spread across 18 industrial parks, located in seven US markets: Atlanta, Charlotte, Columbus, Dallas, Houston, Philadelphia, and Indianapolis.
The joint venture is targeting in-fill warehouses, which have experienced very low new supply due to the limited availability of undeveloped land near urban centers.
Logistics Sector Demand Growing
The two companies are just the latest in a very long line of investors eager to get a piece of the logistics market. Sales of industrial assets this year are poised to shatter the $120 billion record set in 2019, according to new research from LightBox and SIOR.
The report predicts that an uptick in occupier demand, driven mostly by retailers and logistics providers, will push rents between 5 and 7% higher, while asset prices could increase by even more.