Brookfield Asset Management is paying a total of $428 million for 53 industrial assets, as the company seeks to capitalize on the sector's strong long-term fundamentals.
The portfolio, located across the Sunbelt, covers roughly 3.6 million square feet, according to a report from the Commercial Observer. Mostly, the buildings are located in cities including Nashville, Atlanta, Dallas and Houston.
The properties, bought from Stonelake Capital, are 96 percent leased.
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“Given the increased market uncertainty and rising replacement costs over the last several years, particularly in the light industrial space, we believe this transaction represents the opportunity to capitalize on strong supply/demand fundamentals for assets in irreplaceable locations in top markets where Brookfield has experience within our existing operating portfolio,” Andy Smith, head of North American investments for logistics at Brookfield, commented in a statement.
The portfolio now expands Brookfield's logistics portfolio to 75 million square feet. The global investment firm is bullish on industrial, predicting that the sector will see solid momentum for years to come, according to the Commercial Observer.
Despite Brookfield's optimism, there could be short-term headwinds for industrial. Recent research from Prologis noted that some companies are delaying leasing decisions as trade policies and economic concerns drive uncertainty. However, the logistics REIT said that long-term fundamentals remain robust thanks in part to the demand for e-commerce. E-commerce alone is expected to require an additional 50 to 75 million square feet of logistics space annually in the U.S. by 2030, which will help sustain demand, according to Prologis. But it's just unclear what the short-term holds.
The move by Stonelake, meanwhile, continues on its recent divestment of industrial assets. In the last six months, the firm has sold 91 buildings, accounting for a total of 7.6 million square feet, the Commercial Observer said. Contrary to the recent activity, Stonelake said that it will continue developing and purchasing light industrial warehouses, targeting areas witnessing strong population growth.
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Anthony Russo
Anthony Russo has been contributing to GlobeSt. since July 2024. Along with CRE, his financial background expands to capital markets, the economy, and consumer issues. Previously, he has written for CapitalWatch and was a senior reporter for The US Sun.
