Colony Capital Acquires $1.16 Billion National Industrial Real Estate Portfolio

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Lew Friedland

DALLAS–Affiliates of Colony Capital announced the acquisition of a national portfolio of 54 light and bulk industrial buildings for $1.16 billion.

Colony Capital is a diversified global real estate investment firm with $43 billion of assets under management. This value-add portfolio is located across 10 U.S. markets, totals approximately 11.9 million square feet, and is 71% leased.

Forty-eight of the buildings are last-mile light industrial and were acquired through Colony’s existing light industrial platform. The remaining six buildings are bulk industrial and were acquired through a newly formed joint venture in which Colony Capital has a 51% interest and a third-party institutional investor has a 49% interest.

“Our industrial platform has been scaling rapidly over the past four years and this transaction is a milestone that expands our portfolio by 25% in square footage,” said Lew Friedland, Managing Director at Colony Capital and head of Colony Industrial. “These high quality, well-located light industrial assets will give us a stronger presence in both our existing markets and new target markets across the country, especially on the West Coast.”

Mr. Friedland added, “This acquisition represents a strategic expansion by Colony’s industrial platform into the bulk industrial space which complements our strong presence in last-mile, warehouse logistics. Our growing national network of industrial warehouse options gives us new opportunities to serve customers and create synergies from strong existing relationships with tenants, owners, sellers and brokers.”

Light Industrial Portfolio Highlights

  • Light industrial assets are the majority of the acquisition with approximately 7.7 million square feet in 48 buildings in 9 markets (of which, 4 buildings to close within the next 6 months).
  • The properties are located across the U.S. in Northern and Southern California, Washington state, Oregon, Nevada, Illinois and Pennsylvania.
  • The portfolio includes markets where Colony Industrial has an established presence and new target markets where the Company will be investing for the first time.
  • The attractively located infill buildings are near major highways and average 160,000 square feet in size.
  • The portfolio is 73% leased and most tenants are national or international corporations.

Bulk Portfolio Highlights

  • The bulk assets of the acquisition represent approximately 4.2 million square feet, with an average of 700,000 square feet per building, in 6 buildings in 5 markets.
  • The properties are located in Oregon, Northern California, Nevada, Pennsylvania and Kentucky, well-situated for local and regional distribution near major highways and Interstates.
  • The modern properties have an average year built of 2015 and are 67% leased to blue chip, international companies.

The seller was represented by CBRE National Partners. In 2018 CBRE National Partners completed 248 transactions (253 MSF), for 154 clients, to 127 different buyers, resulting in $19B+ in value.