AXA IM to Invest $2.1B in US Markets
The asset management firm will acquire a combination of completed and in-progress properties.
Image courtesy of Pascal Dehovre via Pixabay
Acting on behalf of its clients, AXA IM Alts has purchased a 23-asset portfolio from Dermody Properties Industrial Fund II for approximately $1.2 billion. The European asset management firm will also acquire nine assets currently developed by Dermody Properties for some $850 million, upon their 2022 and 2023 completion. CBRE National Partners arranged both deals.
At full build-out, the DPIF II portfolio will total roughly 8.5 million square feet across 11 U.S. industrial markets: Inland Empire, Calif.; Northern California; Seattle; Portland, Ore.; Las Vegas; Chicago; Louisville, Ky.; Atlanta; Eastern Pennsylvania; Northern New Jersey and Wilmington, N.C. Dermody Properties will continue to manage all assets.
The existing buildings have an average age of eight years and average size of 208,000 square feet, with 65 percent of the properties delivered within the last three years. Most assets range between 150,000 and 400,000 square feet. The initial portfolio was 77 percent leased at the time of sale to a mix of investment-grade tenants.
End-of-year deals
The transactions augment AXA IM Alts’ U.S. portfolio, which will comprise some $3.4 billion of assets under management across 20 markets. The initial acquisition expands the firm’s global logistics platform to 65 million square feet in 12 countries with a total value of $8 billion.
History seems to be repeating itself, as AXA IM closed a similar deal last December. The firm picked up a 27-property industrial portfolio through a share purchase of a REIT formerly managed by Cabot Properties. The assets spanned 8 million square feet across Atlanta, Chicago, Dallas, Houston, Los Angeles, South Florida and central and southern New Jersey. The transaction had an $875 million price tag.
In fact, AXA IM is not the only non-U.S. firm that has recently expanded its U.S. industrial footprint. In the beginning of the month, Canada-based Oxford Properties partnered with EverWest Real Estate Investors in a $1 billion joint venture aiming for infill, small-bay properties near urban centers. The partners had already acquired more than 1.1 million square feet in Denver; San Diego; Phoenix; Houston; Portland, Ore.; and Nashville, Tenn.
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