Eight-State RREEF Portfolio Trades

WESTPORT, CT—Following up on last week's report that Greenfield Partners had acquired a group of industrial properties in the Phoenix metro area, a more complete picture of the locally based private investment manager's acquisition has emerged. CBRE Capital Markets said Monday that it had represented the seller, a real estate investment manager representing RREEF America REIT II, in the sale of the eight-state, 7.8-million-square-foot portfolio to funds managed by Greenfield. The RREEF entity is managed by Deutsche Asset & Wealth Management in Chicago.

The purchase price was not disclosed; industry data puts it at $400 million, or about $51 per square foot. With 94 buildings all told, the portfolio includes multiple properties in the Chicago, Oklahoma City, Minneapolis and Phoenix markets, with others in or near Boston, Cincinnati, Denver and Wilmington, DE. It's leased to more than 400 tenants, and was 89% occupied at closing, says CBRE.

A portion of the portfolio, 16 properties in Oklahoma City, closed this past August. Representing just under 1.3 million square feet, this portion of the RREEF portfolio traded for $55.4 million, industry data reveal.

CBRE's Chris Riley, Mike Caprile, Mike Hines, Jack Fraker and Darla Longo represented the sellers in the transaction. The deal is among a number of industrial portfolio sales, both regional and national in scope, that either were announced or closed during November. The largest of these was Colony Financial's acquisition of Cobalt Capital Partners and its 30-million-square-foot industrial portfolio for $1.6 billion, spanning 16 markets.

Published reports also surfaced during the month that the Blackstone Group was in talks to sell its US industrial platform, IndCor Properties, to a group led by Singapore's GIC Pte. Ltd. If such a transaction does occur, it would represent about 118 million square feet trading for an estimated $8 billion.