X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

SAN FRANCISCO-Locally based Stockbridge Real Estate Funds has acquired an interest in a nine-million-square-foot industrial portfolio from Denver-based ProLogis, multiple sources close to the transaction confirm for GlobeSt.com. Stockbridge acquired the assets through TLF Logistics, a new fund in which the Teachers Retirement System of Texas is an investor.

The portfolio’s 90 assets are located in 11 markets in Portland, Seattle, Northern California, Dallas, Atlanta, Florida Chicago and Houston, according to the sources. The sources did not break down the purchase further and did not reveal the size of the stake or the purchase price, but one buy-side source did confirm that news reports of the transaction totaling 33 million square feet are false.

ProLogis indeed had been marketing 33 million square feet that has been valued by third parties at $43 per square foot or $1.43 billion, according to multiple reports, but it wasn’t looking to sell all of the assets. In February, ProLogis chief investment officer Ted Antenucci said ProLogis had received 80 offers for several different portfolios.

“We don’t intend to sell all the assets that we have offers on but the demand has been significant and interest almost high,” Antenucci said on a conference call with analysts. “We expect to conclude a sale or some sales sometime in the end of the first quarter or early second quarter and no pricing is going to come up, so we expect to see [cap rate] pricing in the single digits and that’s where the competitive offers are right now.”

Sales prices on the Seattle-area portion of the portfolio ranged from $56- to $66 per square foot, according to King County property records. The Seattle-area properties in the deal include Kent 64 Distribution Center (199,806 SF; $11.45M), Kent 72 Distrbution Center (157,520 SF; $9.28M) , ProLgois Park/Van Doren’s Building 2 (154,300 SF; $9.41M) and Andover East Business Center (93,000 SF; $6.14M).

The Portland assets in the deal sold for between $48- and $51 per square-foot, according to Multnomah County Property Records. The properties included 13802-14134 NE Airport Way (182,900 SF; $8,77M), 15311-15617 NE Airport Way (218,400 SF; $10.98M) and 13909-14039 NE Airport Way (157,950 SF; 8.05M).

A source with TRSTexas tells GlobeSt.com that TLF Logistics “currently does not have any leverage” and that its investment in the fund is part of TRSTexas’ “core” portfolio. The investment “is projected to exceed historical ‘core’ returns,” the source tells GlobeSt.com. ProLogis is declining comment until it makes an official announcement.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.